Oak Furnitureland has reported "significant strategic and operational progress" for the financial year ending 30 June 2024, despite a challenging market environment. The company entered 2025 in a strong position, with like-for-like bookings up 9% in the 16 weeks to 22 December and continued positive performance during peak trading.
The business has undergone recapitalisation, reducing its debt and securing £10m in additional funding, along with £47.8m in equitisation. While group revenue declined 17% year-on-year to £236m due to market softness, Red Sea disruptions, and rising freight and inflation costs, the group operating loss improved by 19% to £12.4m. A diverse product pipeline and enhancements in online and showroom operations contributed to this recovery.
Key operational improvements included a new incentive scheme, a mystery shopping programme, and digital transformation efforts. Gross margin increased by 5.5%, with a continued focus on cost management and operational efficiency. The retailer also introduced an interest-free financing offer on purchases over £499, strengthened its 'Grow Your Home' brand, and expanded its showroom portfolio with new locations in Grimsby and North Shields.
To address ongoing freight challenges, the company reinforced partnerships with key providers and diversified its sourcing strategy. CEO Alex Fisher stated, 'Against a challenging market backdrop, with softer volumes and higher inflation, [the company] delivered a resilient financial performance.' He highlighted strategic progress, market share gains, and a firm foundation for future growth.
Source: www.furniturenews.net