DFS, the specialist sofa retailer, has reported strong trading in recent weeks as consumers splashed out on their homes.
DFS said that since its last update in mid July, it has traded well online and in store and that year-on-year order intake growth over the past six weeks is equivalent to around £70m of revenues.
Trading is “significantly ahead of our initial expectations”, DFS reported. The latest performance was in addition to a previously announced strong opening order book that will generate a further revenue benefit of £100m.
DFS reported: “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 a strengthening advantage from our hybrid digital and physical retail offering, which is particularly relevant in this consumer environment.”
The retailer cautioned however 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”.
Some consumer spending may simply be being brought forward, which could change patterns later in the year.
DFS will issue full-year results on September 24.
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