Strong trading for DFS as consumers invest in their homes during lockdown

DFS Furniture said it had continued to trade strongly online and in its showroooms over recent weeks, as consumers spent more on their homes during lockdown.

DFS Furniture has published a trading update.

DFS Furniture has provided an update on trading since its previous statement on July 14 2020.

In the statement, DFS said: "We have continued to trade strongly both online and in our showrooms, with year-on-year order intake growth over the last six weeks that is equivalent to c. £70m of revenues.

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"This trading is significantly ahead of our initial expectations and is in addition to our previously announced strong opening order book that will generate a further in year revenue benefit of c.£100m.

DFS said it had continued to trade strongly both online and in showrooms.

DFS said it believed that this trading performance reflected a combination of consumers spending more on their homes relative to other sectors, latent demand caused by the nationwide lockdown and also a strengthening advantage from its hybrid digital and physical retail offering.

DFS said the financial year had 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".

It added: "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.

"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."