DFS falls to £81m loss, but current trading ‘very strong’

Shares of Doncaster-based DFS Furniture fell 5% on Thursday after it published results for the 52 weeks ended June 28, 2020, showing revenue fell about 27% to £724.5 million “driven by the pause in trading during the Covid-19 lockdown.”

DFS made a pre-tax loss of £81.2 million compared with a profit of £22.4 million a year before.

DFS has suspended dividend payments “to help manage the financial impact of the pandemic.”

However, DFS said the current year has started “very strongly with all showrooms now open and our digital channels continuing to grow.”

It added: “Our year-on-year order intake growth over the last twelve weeks, combined with our previously announced higher opening order book, implies c.£226m of additional revenues will be realised in this financial year.”

DFS CEO 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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