ScS is trading in line with expectations, reports the retailer in an update covering the 26 weeks ended 28th January 2023.
LFL order intake momentum improved significantly throughout the period, and the group returned to growth of +2.6% in the last 10 weeks, which included the key winter sale. As previously reported, LFL performance in the first 16 weeks was impacted by a tough comparative.
The group continued to invest in its operations and estate expansion by opening two new stores in Swindon and York, bringing the total UK store count to 100. Its balance sheet remains strong – £76.9m and no debt.
ScS is also pleased with the progress made through collaboration with the team at Snug since the acquisition on 10th January (see related), and believes the move represents a further progression in the group’s strategy: "Snug’s strong brand and differentiated digital-first offering will complement the group’s existing proposition, further diversifying its customer base and increasing market share," said ScS.
"Despite the current economic climate remaining challenging and unpredictable, the board is encouraged by recent order levels. 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. The group remains on track to meet full-year market expectations."