Shares in DFS Furniture (DFS) have lost nearly 30% of their value so far in 2023 as the sofa seller has struggled with weak demand and inflationary pressures.In the company’s recent set of results, DFS saw its full year profits for the 12 months to 25 June almost halve to £29.7 million compared to last year. DFS’s revenue was also down 5.3% to £1.08 billion.

The company reduced its total ordinary dividend for the year to 4.5p compared to 7.4p in 2022.

So, what’s gone wrong for DFS? Despite opening more Sofology showrooms this year bringing the total to 58 and strengthening its Home category, DFS has fallen victim to a tough economic climate.

Simply consumers have been spending less due to the cost-of-living crisis. This hasn’t stopped DFS launching ‘exclusive brand partnerships’ and trying to broaden its appeal into higher price points.

Shore Capital analyst Eleonora Dani continues to see strengths in the business which could stand it in good stead when the backdrop improves. She says: ‘We think DFS’s strong brand awareness puts the company in an excellent position to capitalise on consumer spending in the home-related categories.’

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