DFS sees fall in profit despite claiming record market share
DFS furniture has seen its profit fall in the second half of 2022 compared to the year prior, but says it has claimed a record market share.
The furniture retailer’s profit before tax fell by £16m to £6.8m for the six month period ending Christmas Day 2022 (H1 FY23) compared to the same period in 2021.
Revenue also fell by 2.2% against the first half of the 2022 financial year to £544.5m, however this number was 9.4% higher than its pre-COVID comparative.
DFS said it was boosted by higher average order values, driven by changes to its range as well as price increases in line with inflation.
The retailer said its market share had increased by around 2%pts increase to 38%, which its said extends its position as the “clear market leader”.
DFS also credited the opening of two new Sofology showrooms, bringing its total number of locations to 57 as the retailer looks to continue a nationwide roll-out plan.
Tim Stacey, DFS group chief executive officer, said: “I’m pleased to report that the group has extended its long track record of achieving market share gains in a challenging market to what are now record levels. We expect our profit for the year to be between £30m-£35m in line with external expectations.”
“Profit margins have reduced over the last year due to a combination of significant cost increases and our commercial strategy to ensure that we continued to offer great value for customers in an environment where consumer discretionary spend was under pressure”, he added.