SOFA chain DFS has cheered rising sales and profits but said it was bracing for a potential market slowdown triggered by political and economic uncertainty.
The firm said pre-tax profits lifted 3 per cent to £16.7 million in the 26 weeks to January 28, with gross sales jumping 7 per cent to £493.7 million.
Revenues also climbed 7 per cent to £379.9 million over the period, as it reaped the rewards from opening new stores and a double-digit rise in online sales.
Chief executive Ian Filby said the company's strategy had delivered "good sales growth and strong cash generation".
But he warned that sterling's Brexit-induced slump against the US dollar had "some impact" on margins in the first half of the year.
He said: "Consumer confidence to date has held up well, but we recognise that furniture retailing in the UK faces an increased risk of a market slowdown in 2017 because of the uncertain political and economic outlook.
"We are taking actions to mitigate these pressures through range management and supplier negotiations, and expect to see further benefits from these initiatives during the second half.
"The flexibility of our cost base, our investments in infrastructure and our vertically integrated business model add to our confidence that we are very well positioned to respond to economic headwinds and cost pressures while continuing to grow our share of the UK retail furniture market."
