For the year to March 29, profit before interest and tax was £2.4m, down from £7.1m a year earlier, when the retailer recorded its best-ever profit. Total sales fell 9.4% from the previous year to £162m, and like-for-likes were down 12.4%.
Finance director Ed Duggan said that the retailer was “cautiously upbeat” about current trading, with profitability approaching historic levels.
He said that signs of recovery in the housing market could boost demand for furniture as more people move house, although he added that Furniture Village wasn’t banking on a quick recovery.
Duggan explained Furniture Village had strengthened its finances by making “substantial” savings in automating the supply chain and an undisclosed number of job cuts.
He said: “There have been job cuts in the past 12 to 18 months as we have been looking to make sure that our size and infrastructure is appropriate for the long term.
I think we are going to bump along for quite a while now.”
Furniture Village will start selling three new product ranges in the autumn, including sofas from recently acquired World of Leather.
Furniture Village is negotiating for two new stores and has previously said that it has the potential for 50 UK shops.
The furniture and homewares market, seen as a key indicator of consumer confidence, showed signs of recovery this summer.
Homewares like-for-like sales rose 0.4% last month, according to accountancy firm BDO Stoy Hayward. Textile and DIY purchases were “strong” and furniture sales “relatively solid”.