DFS: winter sale performance ‘strong’
DFS has told shareholders that recent orders remain ‘strong’.
‘Current order intake performance remains strong, with the important post-Christmas trading period starting well. This sustained performance reflects a positive customer response to our initiatives to drive higher average order values that help mitigate the inflationary trends that we continue to experience,’ it says.
The group says orders remain £200m higher than pre-pandemic levels.
Completed deliveries were up 10% on pre-pandemic levels but 2% lower than the second half of 2020. ‘Covid-related absences, supplier manufacturing capacity and logistics performance, have affected both the furniture and wider retail industry, particularly in the first quarter. We have however seen a strong increase in deliveries across our second quarter, with overall gross sales in Q2 23% higher than in Q1. Looking forward, as a result of the significant recent operational investment in The Sofa Delivery Company, combined with the additional production capacity from new manufacturing partners, we have confidence that delivery levels will continue to grow across H2 FY22.’
It says it expects previous profit forecasts of £66m-£96m to be achieved for 2022.