DFS has slumped to a full-year loss exacerbated by declining sales following the coronavirus lockdown, but has said that customer demand since reopening has been high.

The furniture retailer, which removed its profit guidance following the outbreak of the coronavirus pandemic, has said it now expects to record a pre-tax loss in the range of ÂŁ56-ÂŁ58m excluding Sofa Workshop and Dwell restructuring costs over the 52 week period to June 28.

DFS sales dropped 27% during the period to ÂŁ725m, although online orders have jumped 77% year on year in the period from March 23 to July 12 as shoppers switched to online spending during lockdown.

The specialist retailer said that sales following reopening have been “markedly above prior year comparatives”, with sales up 69% in the period from June 1 to July 12.

DFS said it has also “commenced an operational restructuring of Sofa Workshop and Dwell”, which will incur costs of around £2m “with a targeted reduction in headcount”. The retailer has deferred its opening on five new Sofology showrooms “in order to allow us to take immediate advantage of attractive units that may be vacated by distressed retailers on otherwise fully occupied retail parks”. DFS still plans to grow the Sofology footprint to around 70 stores.

The furniture retailer, which raised £64m of fresh equity in April, said it is well positioned to weather the pandemic and its aftermath as the business has “historically prospered in economic downturns and gained market share”.

Chief executive Tim Stacey said: “Our strong online platforms have served customers well throughout the lockdown and we have seen consistently high order intake, which I’m pleased to see has continued as our showrooms reopened.

“There is no doubt that consumer behaviours are changing fast and as such we are accelerating our omnichannel strategy through increased investment in technology right across the customer experience.”

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