Sofa so good! DFS reaches record market share as it navigates cost of living crisis
DFS recorded a four per cent decline in gross sales compared to last year as the sofa giant warns of “significantly worse” market activity during the cost of living crisis.
The news comes as earlier this year DFS downgraded its profit expectations to between £30m and £35m, slashing it by nearly half on the £60.3m underlying profit it reported in 2021-22.
This comes as the group delivered cost savings initiatives and reduced capital expenditure to secure its balance sheet during a tough economic climate.
However, DFS said gross sales increased by 15 per cent compared to the pre-pandemic levels, and the group reported a market share increase of 38 per cent.
The brand, which has 113 stores in the UK, said it still expects to reach revenues of £1.4bn during the year, and its underlying profit in 2024 is likely to be slightly above 2023 levels.
“I would like to take this opportunity to thank every one of our colleagues and partners for their commitment, hard work and dedication as we trade through the increasingly challenging market conditions,” Tim Stacey, chief executive of DFS said.
“We are in the strongest position we have ever been as a group in terms of market share, and when the market recovers, we will be well placed to deliver our strategy and grow our earnings and cash flows towards our longer term plan.”
More to follow