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Tuesday 03 February, 2004

D.F.S. Furniture Co.

Trading Statement

D.F.S. Furniture Company PLC
03 February 2004

                                                                 3 February 2004

                           DFS FURNITURE COMPANY plc
                                 TRADING UPDATE
          
The Board of DFS Furniture Company plc reports on trading following the end of
the first half of the current financial year on 31 January 2004:

We reported at our AGM on 1 December that like-for-like order intake had been
positive in weeks 10 to 17.  This followed a 3.9% like-for-like decline in the
order bank brought forward and in the first nine weeks of the current financial
year.  Like-for-like order intake over weeks 18 to 26, to 31 January 2004, which
shows the trading position right up to date and includes the important Christmas
and New Year sale period, was 3.2% lower than in the comparable period last
year. As a result, cumulative like-for-like order intake, which will become
delivered sales in the current financial year is 2.2% below last year.  Pre-tax
profit for the first half is expected to be lower than in the comparable period
last year, excluding an exceptional profit of approximately £5 million on the
sale of the freehold of our New Malden store.

As we noted in the annual report, our sector is feeling the effects of intense
competition from both new entrants and established players, with increasingly
aggressive promotional activity.  The outlook for UK consumer spending also
appears uncertain in the light of growing concern about debt levels and the
likelihood of a rise in interest rates.  However, DFS continues to focus on
profitability rather than just turnover, with margins on imported products
assisted by the weakness of the US dollar.

Executive Chairman Lord Kirkham commented: 'While the market is intensely
competitive with all its new entrants, our brand appeal is growing in
recognition, reinforced by the application of our latest store look and new
corporate identity.  We undoubtedly have the best product range, visual
merchandising and people in our sector, and this is reflected in our performance
ratios and solid finances.  This allows me to remain confident of our ability to
meet the challenges ahead.'

DFS expects to announce its interim results for the 26 weeks to 31 January on 15
April 2004.

Enquiries

DFS Furniture Company plc                                     Hudson Sandler
Graham Kirkham, Executive Chairman                            Keith Hann
Jon Massey, Chief Operating Officer                           Sandrine Boussard
Bill Barnes, Finance Director                                 Tel: 020 7796 4133
Tel: 01302 573368



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