DFS has seen its revenue from continuing operations fall by 2.2% to £544.5 million in its first half.
In the six month period ending 25 December, pre-tax profit was also down, coming in at £6.8 million compared £22.8 million in the prior year. DFS said this was a reflection of a weak trading environment, particularly in its first quarter.
Profit margins were reduced due to a combination of significant cost increases and the company’s strategy to remain competitive on price.
However, DFS said it achieved a record market share in the period as it worked to broaden its appeal to a wider audience.
DFS said its order bank remains elevated and is equivalent to around £4 million of profit, which it expects to realise through its second half. It also expects profit margins to improve from the second half onwards.