DFS profits fall by over 50% as company founded in Derbyshire battles inflation and supply chain problems

DFS has seen a decrease in profits over the last 12 months – with the home improvement market shrinking due to inflation.

As reported by the national press the company still generated modest revenue. Deteriorating cost inflation and disruption to supply chains, however, saw their earnings slashed – with the company trying to pass on increasing costs to their customers.

DFS was founded by the Hardy family in Darley Dale back in the 1960s. The company enjoyed success for the next two decades, before a buyout by Graham Kirkham’s Northern Upholstery in 1983.

Kirkham opted to retain the name and today, the company has just under 5,000 employees and 128 stores across the UK and Europe – although reports earlier this year suggested they were considering scrapping their portfolio of Dutch stores.

DFS’ profits dropped by more than half, from £88.7m to £31.4m, in the 12 months up to June 26. This was further affected by an increase in shipping and haulage costs and the end of business rates relief.

The company said that this most recent 12-month reporting period was 'the most operationally challenging year that we can remember’, with share prices also falling by 0.6% to £1.35.

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It has warned that profits could drop to around £20m, but anticipates that revenues will remain above pre-pandemic levels.