DFS furniture chain issues profit warning due to Red Sea shipping troubles

DFS, a furniture retailer, has issued its second profit warning of the year due to delays in deliveries and higher shipping costs caused by the Red Sea crisis. The company expects pre-tax profits of £10m-£12m for the year, down from the initial forecast of £30m-£35m. The Red Sea routing problems, caused by attacks in Yemen, have led to higher freight rates and delays in customer deliveries. DFS has experienced a drop in sales in the upholstery sector and weak consumer demand. Despite challenges, the company saw an upturn in the fourth quarter with orders up by 9%. DFS is optimistic about the future recovery of the market due to lower inflation and interest rates.