DFS swings to full year loss as Covid-19 lockdown affects trading

DFS trading update covid-19 lockdown store closures pandemic
CEO Tim Stacey maintained that the retailer’s performance has improved since stores reopened
// DFS revenue declines in the year to June 28 due to Covid-19 lockdown forcing store closures
// The sofa retailer also made an underlying pre-tax loss

DFS has seen its revenue drop after trading was impacted by store closures due to the Covid-19 lockdown.

In the year to June 28, group revenue fell to £724.5 million from £901 million a year earlier.

In addition, the sofa retailer made an underlying pre-tax loss pre-IFRS 16 of £56.8 million, driven by reduced margin from lower revenue levels.


However, DFS group chief executive Tim Stacey maintained that the retailer’s performance has improved since stores reopened.

The growth in online sales and opening of all showrooms has also allowed the company to successfully start its new financial year.

“While the reported decline in profit is undoubtedly disappointing in headline financial terms, a significant proportion of this profit has already been recovered in the current year as we resumed customer deliveries,” Stacey said.

“The current year has started very strongly with all showrooms now open and our digital channels continuing to grow.

“We believe that this growth is due to a combination of pent up demand from lockdown, consumers spending relatively more on their homes and the strength of the DFS and Sofology propositions in particular.”

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