DFS hails strong full year performance
Furniture retailer DFS has seen a surge in full year sales after consumers spent money on their homes during the Covid-19 pandemic.
Revenue from continuing operations in the 52 weeks to 27 June climbed by 47.4% to £1.1 billion. The company said growth in new orders was significantly stronger than revenue growth due to market share gains, pent-up demand from the first Covid-19 lockdown and a shift in consumer spending to the home during the pandemic. Revenue was also up on pre-pandemic levels when it reached £996.2 million in 2019.
DFS also performed well during lockdown periods with online revenues up 184.3% year-on-year.
The results meant that the retailer achieved a pre-tax profit of £99.2 million compared to a loss of £81.2 million a year ago.
Tim Stacey, DFS group chief executive, said: “Our record profits delivery in the last financial year is a fitting tribute to all the hard work of our colleagues and testament to the resilience and flexibility of our integrated business model. Despite numerous operational challenges during the pandemic, I’m proud that we have remained focused on our strategic agenda to lead sofa retailing in the digital age and are on track to achieve the incremental £40 million of profit benefits set out in 2018. We also see further growth opportunities into the medium term derived from extending the reach of our retail brands and optimising our operating platforms.”
Giving an update on current trading, DFS said its order intake has remained strong in the new financial year to date and is ahead of its previous forecasts of 7% growth on 2019 levels. However, it warned of upcoming difficult conditions due to logistics disruption, cost inflation pressures and unplanned Covid absences.
The retailer added: “We believe that we have the right plans in place to mitigate these impacts, underpinned by our scale, operating experience and longstanding relationships, and we are focused on delivering good customer service, protecting our colleagues and creating long-term value.”
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