DFS has reported a record market share of 38%, despite a drop in sales thanks to the market “being significantly worse than expected”.
In the year ended 25 June 2023, the omnichannel furniture retailer credited its “leading brands, scale and well-invested integrated retail proposition” to the record market share.
However, in the period, the company also reported a dip in sales but claimed it was still on track to deliver underlying pre-tax profits and amortisation of slightly above £30 million.
Sales fell by 4% year-on-year, but remained 15% higher than pre-pandemic levels, the company revealed.
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Looking ahead, DFS said it expects underlying profit in FY24 to be slightly above FY23 levels.
It said: “Trading at the start of the year has been consistent with the board’s expectations. We currently expect market volumes to decline by mid-single digits for the full year, however, the economic outlook remains uncertain.
“To that end, the business has been prudent in its planning, and is taking actions to maximise operating cashflow through continuous margin improvement, delivering cost savings and reducing capital expenditure.”
“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,” CEO Tim Stacey added.
“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”
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DFS sells online and through stores under three brands, DFS, Sofology and Dwell and is is ranked Top500 in RXUK Top500 research. Find out more about how retailers facing challenges from the Covid-19 pandemic, rising energy costs and soaring inflation.