ScS maintains outlook despite weaker sales
ScS Group said it remained on track to meet full-year targets on Thursday, despite a fall in underlying sales during the first half.
Updating on interim trading, the sofa and carpet retailer said like-for-like sales in the 26 weeks to 28 January were down 4.7%.
Within that, they fell 9.1% in the first 16 weeks, but improved in the last ten, rising 2.6%.
The retailer also said it was "encouraged" by recent order levels despite a "challenging and unpredictable" economic backdrop.
"We continue to believe that the group’s refreshed strategy, strong cost management and robust balance sheet places it in an excellent financial and operational position," ScS said. "The group remains on track to meet full-year market expectations."
Shore Capital called the update "highly reassuring", noting: "We leave our forecasts unchanged and reiterate our view that ScS will emerge from the UK consumer recession well-placed to expand market share and profitability, deliver sustained cash generation and support optionality from an already cash-rich, rock solid balance sheet."
Shore Capital acts as a broker to ScS.
ScS opened two new UK stores during the first half, bringing its total estate to 100.