ScS confident in full year profit guidance
ScS has said it anticipates posting full year profit in line with expectations following the impact of cost management activities and improved trading in its second half.
In a trading up update for the 52 weeks to 29 July, the upholstered furniture and flooring retailer said its refreshed brand and strategy are beginning to resonate with customers, and helped drive like-for-like order growth of 6% from weeks 34 to 52 of the period. This follows the previously announced growth of 5.7% for weeks 27 to 33. As a result, order intake for the full year has been in line with the previous 12 months despite a challenging first quarter.
In January 2023, ScS acquired modular sofa maker Snug. Since then, the retailer has been rebuilding supplier relationships for the brand, restoring stock levels, and working to improve brand awareness. While order growth was “initially slower than we had hoped”, ScS said Snug’s current run rates are now in line with expectations.
Looking ahead, ScS said: We are cognisant of the economic conditions facing our customers including higher interest rates and low consumer confidence, which are forecast to continue throughout FY24.
“However, we remain confident that the Group’s strategy and strong balance sheet will enable ongoing trading resilience and we continue to expect to grow our market share while selectively investing in store and other strategic growth opportunities.
