Online furniture retailer posts another year of lower sales

Online furniture retailer Furniture and Choice has reported another decline in both sales and profit.

According to its latest filed accounts for the year ended 31 March 2023, total sales fell 27.2% to £28.2m from £38.8m in 2022, adding to its previous decline of 14.5% from £45.4m in 2021.

Pre-tax profit resulted at £186,000, down from £304,000 recorded the previous year, again marking a consecutive fall from £6.6m.

Stated within its report, the company said: “The reduction in turnover is due to the reduction in online consumer spending on furniture following the surge experienced during the earlier stages of the COVID-19 pandemic. The war in Ukraine and the cost-of-living crisis further reduced consumer demand as we entered into 2022.

“Gross profit has reduced to £4.8m (2022: £5.1m) while gross profit as a percentage of sales has improved to 17.3% (2022: 13.2%). This improvement in gross profit percentage is predominantly due to freight costs decreasing closer to those experienced prior to the pandemic.

“The company maintains a strong financial position and is therefore able to continue to invest in future growth despite the current unfavourable market conditions.”

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