DFS saw its profits cut by almost half over past year in face of 'very weak' demand

DFS said revenue from continuing operations fell 5.2 per cent year on year to £1.09bn for the financial year as it saw the “weak economic backdrop” hamper customer spending. However, the group stressed that it gained market share amid a “very tough” environment.

DFS said it expects a “low single digit” increase in pre-tax profit for the new year – due to be between £30m and £35m – as it benefits from improved market share and profitability. Nevertheless, it said volumes are still expected to fall by around 5 per cent for the year.

Tim Stacey, group chief executive at DFS, said: “I want to sincerely thank our colleagues for their truly outstanding and consistently high level of determination and dedication to deliver at their best for the group, and for their help in getting us to the strongest position we have ever been in terms of market share.

“The group is operating in one of the toughest economic climates we have experienced.”

“Whilst we are confident the upholstery market will recover, forecasting the specific timing and pace of the recovery is challenging.

“We do, however, expect to generate a modest year-on-year increase in profit before tax in FY24 despite a relatively weak market in which we expect volumes will continue to decline across the next 12 months.”