ScS says its orders have improved in recent weeks, following a downturn over the summer. Current trading is now in line with its expectations.
The multichannel sofa and carpet specialist says in an AGM trading update today that trading between October 7 and November 19 was 1.3% ahead of the same time last year. That represents an improvement from a 14.4% decline in orders in the 10 weeks between July 31 and October 6.
Overall, however, ScS orders are down by 9.1% in the 16 weeks to November 19 2022 – a period when sales had rebounded in the wake of Covid-19 lockdowns. Nonetheless the retailer says it has gained market share over the period.
ScS says in today’s update: “The board is encouraged by the group’s recent performance and current trading is in line with its expectations for the full year. The group is preparing for the important winter sales trading period and, as always, its success will be a key factor in the results for the full year. The business is planning to approach the winter sales period in a manner consistent with that which has proved successful in prior years.
“We are mindful of the challenges of the current economic climate. Trading remains difficult to predict, but we believe our refreshed strategy, strong cost management and robust balance sheet places the Group in an excellent financial and operational position.”
ScS operates in the homewares market that was hard hit in the early weeks of the autumn. Companies including Eve Sleep and Made went into administration, citing rising costs and low levels of consumer spending. More recently retailers from DFS to, now, ScS, have said demand in the category is recovering from low sales over the summer, despite macroeconomic uncertainty.
ScS, which sells online and through 98 UK shops, is ranked Top250 in RXUK Top500 research.