DFS has fallen into the red in its preliminary results as sale declined, but boss Tim Stacey has stressed that the retailer’s performance has improved since stores reopened.
The furniture specialist posted a underlying pre-tax loss pre-IFRS 16 of £56.8m in the 52 weeks to June 28, in comparison with a pre-tax profit of £28.2m the previous year.
DFS’ revenue slid 19.6% to £724.5m in the period. The retailer attributed its decline in profits to lower margins and reduced sales, as the financial period covered the entirety of the period when non-essential stores were forced to close due to the coronavirus pandemic.
DFS has stressed that sales since stores reopened have substantially improved in store and online, and the retailer reported that in the six week period until the end of August that sales were ‘significantly ahead of expectations’.
Chief executive Tim Stacey said: “While the reported decline in profit is undoubtedly disappointing in headline financial terms, a significant proportion of this profit has already been recovered in the current year as we resumed customer deliveries. The current year has started very strongly with all showrooms now open and our digital channels continuing to grow. We believe that this growth is due to a combination of pent up demand from lockdown, consumers spending relatively more on their homes and the strength of the DFS and Sofology propositions in particular.
“We remain focused on executing our strategy, with agility and pace, and believe that the Group is well placed to further strengthen our market-leading position in the medium term. The events of the past year have allowed us to build an even stronger sense of togetherness. We emerge from the crisis stronger and with renewed energy and purpose.”
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