The UK division of online furniture retailer Wayfair has reported a decline in sales as profit remained strong.
According to its latest filed accounts for the year ended 31 December 2023, total sales fell 17% to £69.1m from £83.4m in 2022.
Pre-tax profit resulted at £2.6m, slightly down from £2.7m recorded the previous year.
Stated within its report, Wayfair said: “Revenue decreased mainly driven by a 14% decrease in administrative expenses, to which a % markup is applied. The operating margin decreased to 2% for 2023 (from 5%).”
During the period, Wayfair UK saw employee numbers decline by 31% to 587 from 847 against the previous year. This saved around £8m in wage costs year-on-year, although it did incur a restructuring expense of £4.2m.
Since its year end, the wider group, Wayfair Inc, announced a workforce realignment plan, including a reduction of 1,650 staff.
Looking ahead, Wayfair added: “The company is focussed on driving cost efficiency, nailing the basics, and earning customer and supplier loyalty every day.
“Although the short-term macroeconomic picture is unpredictable, we are confident in our ability to navigate its challenges and contribute positively to our ultimate parent’s commitment to maintain adjusted EBITDA profitability and then to reach positive free cash flow.”
Net assets in the UK valued £11.6m, up from £8.8m.
