DFS trading “significantly ahead” of expectations as markets recover

Furniture retailer DFS has reported ‘strong’ trading for the period since its previous statement on July 14.

The firm has issued a new trading update for the last six weeks, in which it saw year-on-year order intake growth equivalent to around £70m in revenue.

DFS commented: “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.

The firm has attributed its performance to its digital capabilities as well as a growing demand for home purchases caused by the pandemic and subsequent lockdown.

DFS continued: “We believe that this trading performance reflects a combination of consumers currently spending more on their homes relative to other sectors, latent demand caused by the nationwide lockdown and also a strengthening advantage from our hybrid digital and physical retail offering, which is particularly relevant in this consumer environment.”

“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.”

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