Soft demand dents sales at furnishings brand

Furniture and homeware brand The Cotswold Company has reported a decline in sales as demand softened.

According to its latest filed accounts for the year ended 26 February 20223, total sales fell 7.1% to £86.2m from £92.7m in 2022.

EBITDA resulted at £2.1m, up from £1.7m, while pre-tax losses resulted at £428,000, down from its profit of £769,000 recorded the previous year.

Stated within its report, the company said: “A softening of the UK furniture and homeware sector, a highly competitive retail trading market and a challenging macro-economic environment created significant headwinds for the company to navigate.

“Sales orders decreased 10.7% to £79.4m, and turnover (delivered orders) decreased by 7.1% reflecting the market dynamics described above as well as softening post-pandemic demand.

“On a three-year basis, the company’s turnover remained 57.8% ahead, with active customers 29.7% head, reflecting in particular the strong growth of the company’s online business in recent years.”

During the period, the business incurred a number of exceptional administrative expenses in relation to cost rationalisation and its move to a new warehouse facility in Lichfield. These actions are expected to provide profit growth in the future.

Furthermore, the company expanded its upholstery and accessories proposition, while also introducing new entry price point collections and more premium ranges to broaden its consumer appeal.

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