Tuesday 9 March 2021 9:31 am

DFS Furniture enjoys lockdown cushion as online sales soar

DFS Furniture’s revenue soared to £572.6m in the final six months of last year as consumer demand for new home furnishings jumped in lockdown.

Revenue increased 17.3 per cent compared to 2019, despite the closure of non-essential retail during Covid lockdowns, boosted by a 66.2 per cent surge in online sales.

Read more: WH Smith reduces cash burn after beating lockdown trading expectations

Shares in the furniture maker jumped more than five per cent this morning after it reported a strong trading performance as the national November lockdown drove consumers to improve their living conditions.

The group posted a fall in bank debt in the 26 weeks ended 27 December, from £157.7m to £38.2m, despite “significant” disruptions to supply chains.

“This strong first half profit and cash flow performance is a true reflection of the supreme efforts put in by our teams right across the group since the start of the pandemic,” chief executive Tim Stacey said.

“The investments we’ve made in our digital channels have generated exceptional revenue growth.”

DFS also announced that its Sofa Delivery Company roll-out has progressed, with new manufacturing investment under consideration.   

The retailer bounced back after showroom closures due to restrictions and has announced the opening of three new Sofology showrooms, with a target of opening six to 10 more sites.

Stacey said: “Our business has proven to be resilient throughout the period despite showroom closures and a significant amount of external disruption in our supply chains.

“We expect to see a good level of activity in the home market as Covid-19 restrictions ease and, having accelerated the execution of our strategy and grown our market share, we are well set for future growth.”

Read more: UK retail sales return to growth after lockdown exit roadmap announced

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