DFS sees recent orders almost double

from Interiors Monthly July 2021

Review

DFS sees business at almost twice 2019’s levels

DFS has seen recent trading at almost twice pre-pandemic levels. Orders in the 10 weeks to 6 June were 92.1% higher than in 2019. Orders for the 23-week period were 14% higher than 2019, and 10.4% higher for the 49-week period.

The group says profits will be at least £105m this year, despite 21 weeks of lockdown closures, and supply chain and raw material disruptions. It says it has gained a further 2% of market share of a growing market, and the most recent order growth will underpin next year’s results. It has scenarios where underlying profits will be between £66m and £96m, well above analysts’ forecasts, it adds.

Since stores re-opened in April, online penetration has settled 1%-2% above pre Covid-19 levels, at about 19%, it says. It expects a final dividend of 7.5p in September.

‘This performance once again reflects both the underlying resilience of the group and the tremendous support from our colleagues, who have worked with huge dedication and commitment throughout the pandemic. Our aim is to lead sofa retailing in the digital age by building a truly integrated retail model that allows us to drive market share gains ahead of the competition. We will continue to invest in key strategic initiatives such as our digital channels, our showrooms and our Sofa Delivery Company final mile logistics capability, along with new investment in UK manufacturing and capacity, and expansion into other home categories,’ says Tim Stacey, DFS Group chief executive.

SCS upbeat

ScS saw orders jump by 79% between April and June compared with the same period in 2019, limiting its annual decline to under 10%.

Orders from 4 April to 12 June were 370.8% higher than 2020, when stores were closed for much of the period.

Orders from 24 January to 3 April were 86.2% lower than 2019, 82.9% lower than 2020. Combined orders for the 46-week period were 9.5% lower than in 2019 and 10.6% higher than 2020.

The chain plans to restore the dividend from July.

Sales boom continues for furniture and flooring

Furniture and flooring both enjoyed significant monthly sales increases in May, compared with 2019 sales.

Initial estimates from the Office of National Statistics show that average weekly sales of furniture and lighting in England, Wales and Scotland reached £372,441,000 during the month. This is a 21.2% increase on April 2021.

Sales in May were 3.78 times those of May 2020, when all non-essential retail was closed.

Compared with May 2019 sales were 34.9% higher.

Flooring retailers saw average weekly sales reach £45,677,000. This is a 8.5% rise on April 2021.

Sales in May were 5.8 times the figure for May 2020.

Compared with May 2019, sales were 60% higher.

£372.4m was spent on furniture and lighting

Made for the market

Made.com had a relatively flat star to life as a plc after June’s £775m flotation. After seeing a sharp drop in value in the first day, shares recovered in later weeks and at the time of writing were 0.5% above its 200p flotation price.