Furniture retailer DFS has reported a profit drop of over 49 per cent in its 2023 financial year versus its 2022 numbers, but says it will stick to its 2024 profit forecast.

Profits in 2023 fell to around £30.3 million from around £60.6 million in 2022, with the Doncaster-headquartered furniture retailer stating it was operating in “one of the toughest” trading environments it had experienced.

However, it noted that despite its losses compared to the 2022 financial year, it remained 13.8 per cent ahead of its pre-pandemic financial year 2019 pro-forma period.

“Whilst we are confident the upholstery market will recover, forecasting the specific timing and pace of the recovery is challenging,” said DFS chief executive Tim Stacey.

Stacey added that DFS expects to generate a “modest year on year increase in profit before tax in FY24” despite a relatively weak market in which it anticipates volumes will “continue to decline” across the next 12 months.

In more positive news, the financial report revealed the firm has continued the successful refinancing of debt facilities in September 2023, which it described as a “strong positive endorsement of the Group” and that securing additional liquidity for an extended period and flexibility would help it to execute on its future growth plans.

DFS recently announced that it had achieved record market share of 38 per cent among its competitors, in spite of the furniture market shrinking by 15 to 20 per cent.

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