Brits rushed to buy new sofas as soon as COVID-19 lockdown lifted

Yahoo Finance Staff
·2-min read
DFS Furniture and sofa store seen in London. Photo: Keith Mayhew/SOPA Images/LightRocket via Getty Images
DFS benefitted from pent up demand during lockdown, according to the company. Photo: Keith Mayhew/SOPA Images/LightRocket via Getty Images

The boss of DFS Furniture (DFS.L) said that Brits rushed to buy new sofas as soon as the strict coronavirus lockdown measures were lifted in the UK, leading to a “significant proportion” of profit recovery in the last few months.

In the group’s preliminary results statement, 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.

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“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.”

DFS reported preliminary results for the 52 weeks ending 28 June 2020 and all comparisons were to a prior year of 48 weeks ending 30 June 2019.

DFS reported group revenue for the full year of 2020 at £724.5m ($919.7m) — a reduction of £271.7m from the unaudited pro-forma 52 week comparative period, “driven by the pause in trading during the COVID-19 lockdown.”

It pointed out that “strong online order intake since March, and in showrooms since reopening ... has continued into the current year.”