// DFS says trading has been “significantly ahead of expectations” in the last six weeks
// It says Y-o-Y order intake growth both in stores & online was the equivalent to around £70m in revenue
DFS has issued a trading update that states strong trading has been “significantly ahead of expectations” in recent weeks as consumers went on a spending spree for the their homes.
The furniture retailer said trade for the last six weeks was been strong both in its stores and online with year-on-year order intake growth equivalent to around £70 million in revenue.
DFS attributed the strong start to its new financial year to consumers spending more on their homes relative to other sectors.
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The retailer also cited pent-up demand caused by the Covid-19 lockdown, and its hybrid digital and physical retail offering.
Despite the strong start, DFS highlighted that it was hard to present a forecast beyond the short term due to uncertainty surrounding the Covid-19 pandemic and the potential impact of Brexit.
“Notwithstanding these risks, recent trading and our current momentum does increase our earnings resilience and it has significantly strengthened our financial headroom,” it stated.
“Furthermore, the board continues to have confidence that the business is well-positioned to capitalise on opportunities as its markets recover.”
Last month, DFS announced plans to cut jobs amid a post-lockdown restructure, after its full year results revealed a swing to a loss and a dramatic plunge in sales.
The company, which owns Sofa Workshop, Dwell, Sofology and of course DFS, confirmed it would be take “necessary actions” after its revenues for the year ending June 28 came in at £725 million – a dramatic £271 million drop compared to last year.
DFS also said it expected to record a pre-tax loss of between £56 million to £58 million, subject to audit and excluding Sofa Workshop and Dwell restructuring costs.
While the retailer did not confirm how many jobs were at risk as part of plans to restructure its Sofa Workshop and Dwell fascias, it said that the reduction in headcount will incur restructuring costs of less than £2 million.