DFS Furniture PLC (LON:DFS) said it slumped to a full-year loss but it expects revenue to grow after high demand post-reopening.
In the year to June 28, the sofa retailer estimates a £56-58mln loss before tax from last year’s £50mln profit, as revenues dropped 25% to £725mln amid the coronavirus crisis. Cash at year-end was £160mln.
READ: DFS Furniture reassures after first-half sales dip
But order intake in showrooms soared 69% between June 1 and July 12, reflecting latent demand, and is expected to result into an extra £100mln of revenues in the first half of the current financial year.
The furniture seller added social distancing measures do not present a material barrier to trading given the large footprint of most of its showrooms.
"The company responded well to the Covid-19 situation putting in place a cost-saving programme to mitigate the cash burn in the business and putting additional financing in place to strengthen the balance sheet," analysts at Shore Capital commented.
"Amidst a changing retail landscape we see DFS as a survivor with an opportunity to win market share as weaker competitors exit the furniture market."
Shares rose 1% to 156.8p early on Tuesday.
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