An online furniture retailer, has reported a significant drop in sales according to its latest accounts for the year ending 31 March 2024. Sales fell by 26.5%, totalling £20.7m, compared to £28.2m in 2023. The company also recorded a pre-tax loss of £1.2m, a sharp decline from the previous year's profit of £141,000.
Photo: Furniture & Choice.
In its financial report, the online furniture retailer, Furniture and Choice, attributed the downturn to reduced consumer spending on furniture following the surge during the earlier stages of the COVID-19 pandemic. The report further noted that geopolitical factors, including the war in Ukraine and the conflict in Israel, coupled with the ongoing cost-of-living crisis, contributed to weaker demand as 2024 began.
Gross profit also declined, dropping to £3.4m from £4.9m the previous year. Gross profit as a percentage of sales fell slightly to 16.35%, down from 17.30%. While freight and distribution costs reduced in line with sales, the company experienced a rise in direct advertising expenses, which impacted its profit margins.
Despite these challenges, the retailer emphasised its commitment to maintaining strong capital reserves and reducing overhead costs, particularly after the end of the financial year. Furniture and Choice highlighted its implementation of efficient stock management policies and ongoing investments in technology and marketing as measures aimed at improving future financial performance.
The company remains optimistic about its ability to adapt to the evolving market landscape and is focused on strategies to recover its profitability in the coming years.
Source: www.bigfurnituregroup.com