Coronavirus lockdown gives Doncaster's DFS £70 million sofa sales boost

The firm, which has its headquarters in Carcroft, says it has seen a dramatic reversal of fortunes in recent months because of the Covid-19 pandemic.

According to new company figures, the firm said its orders in the last six weeks are up by around £70m on the previous year.

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The company attributed the growth to demand that had been dormant during the lockdown period and higher consumer spending on home improvements relative to other sectors.

It also said it had received 'strengthening advantage from our hybrid digital and physical retail offering, which is particularly relevant in this consumer environment.'

Business has soared since the company reopened its stores in May, growing 69 per cent year-on-year between June 1 and July 12, while online trade was up 77 per cent between March 23 and July 12

Shares in DFS soared by 10.7 per cent after it said the results were 'significantly ahead' of its initial expectations, which come on top of its healthy order book that it believes will result in a further in-year revenue benefit of £100million.

Last month, the firm, which also owns Sofology, Dwell, and Sofa Workshop declared that the lockdown has cost them over £270million in lost revenues and that it could axe 200 jobs as a result.

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But it also gave a further warning that the impact of Covid-19 on consumer confidence and the Brexit negotiations has created 'significant uncertainty' and that it is 'exceptionally difficult' to forecast a long-term outlook.

'While positive trading momentum currently remains, we do note that some consumers may be bringing forward spending decisions, and this may impact trading later in the financial year,' a statement said.

'Notwithstanding these risks, recent trading and our current momentum does increase our earnings resilience, and it has significantly strengthened our financial headroom.

'Furthermore, the Board continues to have confidence that the business is well-positioned to capitalise on opportunities as its markets recover.'