A leading hardwood furniture retailer has reported a 17% decline in sales to £236m for the year ending 30 June 2024, attributing the drop to a "soft market," Red Sea disruption, and rising freight and inflation costs.
Photo: Oak Furnitureland.
Despite this downturn, the group's operating loss improved by 19% to £12.4m, thanks to a diverse product pipeline and a focus on digital transformation, customer incentives, and showroom enhancements. The company also saw a 5.5% increase in gross margin, driven by cost management and operational efficiencies aimed at boosting profitability.
Oak Furnitureland, the retailer in question, expanded its showroom portfolio with new openings in Grimsby and North Shields, along with the launch of new product lines such as the Newton and Henley collections, which 'reflect current trends and offer a contemporary twist on classic designs.'
The company has started FY25 on a positive note, with like-for-like bookings up 9% in the 16 weeks to 22 December, driven by market share gains. CEO Alex Fisher commented that, despite "a challenging market backdrop," Oak Furnitureland had made "significant headway" in operational efficiencies and product expansion, enhancing its financial position and brand accessibility.
Fisher also noted the success of interest-free credit offerings, which helped secure additional funding and strengthen the company's balance sheet. Looking ahead, he expressed confidence in the retailer's strategic direction, emphasising the team's efforts and plans for future growth.
Source: www.bigfurnituregroup.com