ScS today said it expects to report full-year profits ahead of expectations – but warned of falling order levels as consumer confidence declines, affecting both its online and in-store businesses.
The upholstered furniture retailer says in a full-year trading update today that visits are down across channels as confidence is hit by cost of living pressures and economic uncertainty.
In the first half of its financial year, orders – measured on a like-for-like (LFL) basis that strips out the effect of store openings and closures – were 16.6% higher than in the previous year, but 3.1% lower, LFL, than the same period in 2019. In the second half of the year, orders were 9.9% down LFL on the previous year, and 4.9% lower than in 2019. Across the full year, LFL orders were 3.9% higher than the previous year, and 3.9% lower than in 2019.
As of year end on July 30 2022, the ScS order book stood at £71.7m – £31.8m lower than the same time a year ago, but £28.8m higher than the same point in 2019.
ScS says its financial position is robust, with £70.8m in cash as of July 30 2022 and no debt. But it adds: “We expect the low consumer confidence will continue to adversely impact the group in FY23. However, the group is in a strong position as we enter the new financial year and strategic progress over the last 12 months means we are well positioned to take market share and maximise opportunities in a difficult environment.”
ScS is ranked Top250 in RXUK Top500 research. It currently sells online and from 98 UK shops.