Furniture retailer DFS has said it achieved a record market share of 38% in the year to 25 June.

In a trading update, the retailer said underlying pre-tax profit in the period was in line with previous guidance at slightly above £30 million, despite the furniture market being “significantly worse” than expected. 

In addition, there was an improvement in gross margin rate due to freight costs returning to pre-pandemic levels and effective cost control.

However gross sales were down 4% year-on-year, but up 15% compared to pre-pandemic levels.

DFS said trading at the start of the new financial year has been in line with expectations, although it anticipates that market volumes will decline by mid-single digits for the full year.  

  Despite the ongoing pressure on market volumes, it expects underlying profit in the year to be slightly above FY23 levels. It also said that it remains  confident in delivering it long-term targets of £1.4 billion of revenue, an 8% pre-tax profit margin and 75% post tax free cash conversion.