DFS benefits from lockdown spending in year-to-date

The London-listed firm said gross sales over the 24 weeks to 13 December were 19% ahead on the prior year, with its order bank described as “strong”, providing future resilience.

Gross sales via its online channels were 76% ahead of the comparative prior-year period.

DFS said that performance reflected the benefit of a shift in spending to home categories, and also market share gains, leading to “particularly strong” order intake in the first quarter, and a resilient second quarter to-date, despite “extensive” showroom closures in November.

Subject to the extent of enforced showroom closures, and based on cautious order intake assumptions, DFS said it was expecting full-year profit before tax and brand amortisation to be within the upper half of the current market forecast range.

It also said it was in a “robust” financial position, with closing interim pre-IFRS 16 net debt expected to be between £40m and £50m, making for a reduction over the 26 weeks of more than £115m.

“We are working all hours focusing on what we can control to look after our people and our customers,” said group chief executive officer Tim Stacey.

“While the current environment is clearly unpredictable, our business model is resilient and we are well set for medium term growth.”

At 0819 GMT, shares in DFS Furniture were up 10.48% at 232p.