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DFS trading remains ‘strong’ despite lockdown

DFS announced today it is continuing to trade “strongly” both online and in showrooms despite the economic downturn, with year-on-year intake growth over the last six weeks that is equivalent to approximately £70m of revenues.

This trading is “significantly” ahead of the furniture retailer’s initial expectations, with its previously announced opening order book estimated to generate a further £100m in year revenue benefit. 

DFS said this trading reflects consumers currently spending more on their homes during lockdown, as well as the “strong advantage” of its hybrid digital and physical retail offering.

In the latest trading update, DFS said: ‘‘The financial year has started strongly, however we do note that significant uncertainty related to Covid-19 on UK consumer confidence and the potential impact of Brexit exists and it is exceptionally difficult to assess the outlook beyond the short term.

‘‘While positive trading momentum currently remains we do note that some consumers may be bringing forward spending decisions and this may impact trading later in the financial year.’’

It added: ‘‘Notwithstanding these risks, recent trading and our current momentum does increase our earnings resilience and it has significantly strengthened our financial headroom. Furthermore, the Board continues to have confidence that the business is well-positioned to capitalise on opportunities as its markets recover.’’

 

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