DFS has claimed almost 40% of the UK’s upholstery sales.
The group says that market share rose to 38% in the year to 25 June as it outperformed the market.
It says like for like sales dropped by 4%, compared with a market that dropped by 15%-20%. It described the upholstery market as ‘significantly worse than expected’ but still expects underlying profits of just above £30m as gross margins continue to rise.
Looking to the current financial year it says: ‘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, is taking actions to maximise operating cashflow through continuous margin improvement, delivering cost savings and reducing capital expenditure. Despite the ongoing pressure on market volumes, we expect underlying profit in FY24 to be slightly above FY23 levels, supported by the group’s leading brands, scale and well invested integrated retail proposition.’
‘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. 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,’ says Tim Stacey, DFS Group chief executive.
