ofa chain DFS Furniture has revealed falling full-year gross sales as buying and selling situations proved “significantly worse than expected”, however mentioned cost-cutting actions are serving to to restrict the hit to income.

The group reported a 4% drop in product sales for the 12 months to June 25, with client spending on massive ticket gadgets reminiscent of sofas, dented by the cost-of-living disaster and wider financial woes.

DFS mentioned the broader market noticed gross sales by quantity tumble 15% to twenty% over the 12 months, but it surely secured a document market share of 38%.

It is ready to put up underlying income in keeping with expectations for the 12 months to June 25 – at simply over £30 million – “despite the market being significantly worse than expected”, and mentioned value management ought to assist income carry barely over the brand new monetary 12 months.

We are within the strongest place we've ever been as a gaggle by way of market share

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In March, the retailer downgraded revenue expectations, guiding for between £30 million and £35 million.

This marks a steep drop on the £60.3 million underlying income reported in 2021-22.

DFS mentioned “prudent planning” would assist underlying income enhance in 2023-24, regardless of the continuing unsure financial outlook because it takes motion to spice up its revenue margins via value financial savings and reducing spending.

Group chief govt Tim Stacey mentioned: “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.”

The group will put up full-year outcomes on September 21.

DFS reported half-year figures in March exhibiting that statutory pre-tax income plunged by greater than two-thirds to succeed in £6.8 million as revenues fell 2.2% to £545 million.

It mentioned on the time that web debt greater than doubled to £136 million.