DFS Furniture, the leading U.K. furniture retailer, has announced its expected financial performance for fiscal years 2023 and 2024. The company anticipates that its underlying pretax profit for fiscal 2023 will align with previous guidance, while fiscal 2024 is projected to be slightly higher.
Previously, DFS stated that its underlying pretax profit for the period ending June 25 would range between £30 million to £35 million. However, the company now expects this figure to be slightly above £30 million.
DFS has experienced continued improvement in gross margins for fiscal 2023. However, the macroeconomic environment has negatively impacted customer demand, resulting in a decrease of 15%-20% in volumes over the year.
Despite these challenges, DFS has achieved a record market share of 38% in fiscal 2023. The company remains optimistic about its performance in the current year, aiming to outperform the market and achieve low single-digit profit growth while expanding its market share.
Chief Executive Tim Stacey expressed confidence in DFS’s future prospects, stating, “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 toward our longer-term plan.”