Record market share for DFS despite dip in sales

DFS has achieved record market share last year, despite a dip in sales, as it expects profits to grow in the next 12 months.

The Doncaster furniture retailer’s share of the market hit 38% in the year to 25 June 2023, which its said was underpinned by the group’s “leading brands, scale and well invested integrated retail proposition”.

It said it was on track to deliver an underlying pre-tax profit and amortisation of slightly above £30m, “despite the market being significantly worse than expected”.

Sales slipped 4% year-on-year, although were 15% higher than the last pre-pandemic year.

Looking ahead, DFS is expecting market volumes to decline by mid-single digits for the full year compared to the 15-20% plummet last year. It also forecasts profits to be slightly higher in the coming 12 months.

Tim Stacey, group chief executive, said: “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.”

DFS report its FY23 results on 21 September 2023.