ScS sales boosted by pent-up demand

ScS trading update David Knight Steve Carson
ScS said sales were boosted by pent-up demand during June and July last year
// ScS profits and sales rise thanks to pent-up demand
// The furniture retailer reached a pre-tax profit of £17.7m in the 26 weeks to January 23
// Operating profit surged from £1.2m to £19.8m

ScS has recorded a rise in its profits and sales thanks to pent-up demand amid the Covid-19 pandemic.

The furniture retailer reached a pre-tax profit of £17.7 million in the 26 weeks to January 23, compared to a £600,000 loss the previous year.

Meanwhile, its operating profit surged from £1.2 million to £19.8 million.

READ MORE: ScS sales smash £182m thanks to lockdown demand

Scs received government support of £6.6 million during the period through the furlough scheme and business rates relief.

Total revenues increased 14.4 per cent to £173.9 million in its first half, while gross sales rose 13.9 per cent to £182.3 million.

ScS said sales were boosted by pent-up demand during June and July last year and an 81.3 per cent surge in online sales to £17.7 million.

Meanwhile, online sales had continued to rise during the second half of its fiscal year so far.

During the seven weeks to March 13, online orders more than doubled, increasing by a colossal 157.5 per cent.

However, its overall order intake dropped 87.2 per cent on a like-for-like during the same seven-week period as store closures impacted trading.

“With consumer confidence and the economic environment remaining uncertain, it is difficult to provide clarity on the group’s outlook for the weeks and months ahead,” ScS chief executive David Knight said.

“However, we remain cautiously optimistic as recent government announcements have provided further clarity on the anticipated reopening of our stores.

“The business continues to adapt and respond to trading conditions, with increased focus on the development of our digital channels.

“We are confident that our underlying priority of providing an excellent customer experience with outstanding value, quality and choice, will continue to prove successful.”

Knight will be replaced as chief executive by former Holland & Barrett and Argos executive Steve Carson, who joined ScS in January.

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