ScS Group PLC (LON:SCS) said it had traded in line with expectations over the first half as well as over the Christmas period.
In a trading update for the 26 weeks ended 26 January, the sofa retailer said like-for-like (LFL) order intake growth was 1.5% while two-year LFL order intake was up 4.5%.
READ: ScS to close all House of Fraser concessions after big sales drop, core business continues to perform well
The firm added that despite the loss of one trading day in the week of Boxing Day, trading over the winter period was in line with expectations.
ScS also said that it had also ceased trading from all of its 27 concessions in department store chain House of Fraser, which collapsed last year before being bought by Sports Direct International PLC (LON:SPD) boss Mike Ashley.
Looking forward, the firm said that while it was “mindful” of any risks arising from Brexit, it believed its “increasing resilience” put it in a strong position to manage “continued economic uncertainty and take advantage of opportunities”.
In a note to clients, analysts at broker Peel Hunt retained their ‘buy’ rating and 250pm price target on the stock, saying that the “solid” numbers should be put into context with “a sector that is finding life tough”.
“Furniture Village and Harvey’s did not enjoy Christmas and we’ve seen a bidding process begin (SCS included) for the troubled sofa.com. This remains an industry in which we think that the strong will get stronger and the weak will find the going increasingly unbearable. It’s hard to be confident that consumer confidence we lead to short term forecast momentum here but SCS is one of the winners”.
Shares were down 5.1% in mid-morning at 222p.