Online furnishings retailer narrows losses

Online furnishings and homeware retailer Danetti has reported narrowing losses as it looks to return to profitability.

According to its latest filed accounts for the period ended 30 September 2023, total sales generated £16m, down from £34.9m, although this was compared to an 18-month trading period.

Pre-tax losses for the period under review stood at £251,000, improving from its loss of £1.4m.

Danetti, which also operates a showroom in Bracknell, Berkshire, said: “Weaker consumer demand was a feature of the financial year, with the economic uncertainty, the pressure on customers’ disposable incomes and subdued level of housing transactions combining to create a more challenging trading environment.

“In the context of this difficult economic landscape, the Company has engaged in focused promotions to reduce excess stock levels. It has also invested in the brand to communicate points of product differentiation in a price sensitive market.

“Enhancing the relationship with customers continues to be a priority, through the breadth of product offering and the quality of customer experience.

“Product margin has been improved in the year as freight costs returned to normal levels. Appropriate adjustments to the overhead base have been made to reflect the trading conditions.

“As a result of these initiatives in the year, losses were reduced significantly and the Company is now well positioned to return to profitability.”

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