DFS, the UK’s biggest independent furniture retailer, has said full-year profits plunged by 22% because of a “challenging furniture market”.
Pre-tax profts in the 12 months to 30 July tumbled from £64.5m to £50.1m.
Sales were largely flat year-on-year, with revenue nudging up 0.9% to £762.7m.
The firm said profits were hit by “continuing uncertainty in the economy” and the continued weakness of sterling since the Brexit vote.
In August, the firm snapped up its smaller rival Sofology in a £25m deal despite concerns of a slowdown in consumer spending.
Chief executive officer Ian Filby said: “Although group sales will inevitably be affected by the market environment, we have identified opportunities to drive operating efficiencies and reduce financing costs that are expected to deliver near-term benefits, particularly in the second half of the financial year.
“Based on these plans and the current market environment, we would expect to achieve modest, second-half weighted profit growth and good cash generation in the current financial year and we continue to have excellent prospects for the longer term.”