Wiltshire-based online furniture retailer Furniturebox has returned to profit after seeing sales rise by more than 20% over the past year. The Chippenham-based company said turnover in the US nearly tripled to £6m, with more than 100 products launched across the pond.
The business posted a profit of £612,000 for the year ending July 31, 2024, following a more than a £1m loss the previous year due to a £3m investment in its new warehouse headquarters next to the M4.
Sales grew from £21m in 2023 to more than £25m in 2024 as the company expanded through Amazon US and European sales outside the UK doubled.
Co-owners Monty George and Dan Beckles, both aged 27, said US expansion drove growth across all sectors, despite a “complex” domestic environment hit by “persistent cost of living concerns”.
Mr George said: “We are delighted to have returned to profit with a big jump in sales in what has been a really tough market for everyone in the interiors market.
“Our first loss the previous year was due to the major investment in our new warehouse headquarters which has brought huge efficiency savings and allows us to deliver more quickly than our competitors.
“This was part of a long-term strategy which is really paying dividends with a strong new management team in place, all committed to sustainable growth here and in the US and throughout the rest of Europe.”
In a strategic report accompanying the results, Mr George and Mr Beckles, who founded the company a decade ago then aged just 17, said they were confident of “accelerated momentum” in the current financial year, despite “mixed signals in the market”.
The report highlighted new challenges including conflicts in the Middle East, which had led to shipping delays and rising costs, putting pressure on margins. But Furniturebox said it had still managed to increase margins due to “strong supplier relationships and proactive planning”.