Sales at Sofology dipped during its latest financial year alongside those of its parent, DFS.
The company's revenue fell from £242.9m to £230.4m in the year to June 25, 2023, according to new figures filed with the London Stock Exchange. However, its gross profits increased slightly from £121.3m to £123.6m.
Sofology was founded in Clayton-le-Moors, Lancashire, in 1974 and is now headquartered in Golborne. Parent company DFS bought the brand in 2017.
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The new figures also show that DFS's revenue fell from £1.14bn to £1.08bn in the year while its pre-tax profits were cut from £58.5m to £29.7m.
Chief executive Tim Stacey said: "I want to sincerely thank our colleagues for their truly outstanding and consistently high level of determination and dedication to deliver at their best for the group, and for their help in getting us to the strongest position we have ever been in terms of market share.
"The group is operating in one of the toughest economic climates we have experienced. Whilst we are confident the upholstery market will recover, forecasting the specific timing and pace of the recovery is challenging.
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"We do, however, expect to generate a modest year on year increase in profit before tax in FY24 despite a relatively weak market in which we expect volumes will continue to decline across the next 12 months.
"Looking to the future as market volumes recover, we remain confident in achieving the financial performance set out at our capital markets day in 2022 of £1.4bn of revenues at an 8% PBT margin."