DFS falls to loss in face of Red Sea shipping delays and high interest rates
manchestereveningnews.co.ukFurniture retailer DFS has tumbled to a loss for the past year after it was hit by Red Sea shipping delays and higher interest rates.
The sofa specialist said sales were significantly down year-on-year due to “exceptionally low market demand”. It told shareholders that revenues dropped by 9.3% to £987.1 million for the year to June 30, compared with the previous year.
It said that delays to shipments due to cross the Red Sea – which have been redirected below the foot of Africa due to attacks on ships by Houthi rebels in the region – were partly to blame.
Disruption to shipments meant £12 million of sales were pushed back into the new financial year, DFS said. The sales slump also comes as shoppers have held back spending on big ticket items in the face of the recent surge in the cost of living and higher mortgage and rental costs.
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