Furniture retailer SCS says sales dented by heatwave
LONDON (Reuters) - Furniture and floorings retailer SCS Group (L:SCSS) on Wednesday reported a fall in second half sales, blaming a softer trading environment and extremely warm weather in June and July for the shortfall.
An industry survey published on Tuesday had highlighted weak non-food retail sales in July, with furniture sales notably poor. The survey found consumer confidence remained fragile particularly around bigger ticket items.
SCS said like-for-like order intake in its second half to July 28 fell 2.6 percent, having increased 2.2 percent in the first half.
For the full year, the group therefore achieved an overall like-for-like order intake increase of 0.2 percent - which it said was in line with the board's expectations.
SCS said the outcome was encouraging given the UK's tough retail environment.
"We believe this demonstrates the increasingly resilient nature of our business and the success of our value proposition," said Chief Executive David Knight.
Shares in SCS, up 35 percent over the last year, closed Tuesday at 214.5 pence, valuing the business at 86 million pounds.
Shore Capital maintained its 2018 adjusted pretax profit forecast for SCS of 12.5 million pounds.