Sofa retailer DFS Furniture has reported slumping annual profits and warned over a further hit to its bottom line over the year as it said industry sales could fall by up to 15% amid a dip in consumer spending. The group reported a 43% tumble in pre-tax profits to £58.5 million in the year to June 26.
On an underlying basis, pre-tax profits were 45% lower at £60.3 million. DFS said order numbers have “softened markedly” in the last quarter of the financial year and first three months since the year-end as the cost-of-living crisis impacts shopper confidence.
It outlined three profit scenarios for the 2022-23 year, warning that underlying profits could plunge to between £20 million and £54 million if sales numbers across the market decline by between 5% to 15%.
