Red Sea disruption has hit DFS as the company warned of lower-than-expected results.
A "weak upholstery market", alongside an estimated £14m worth of delays to deliveries, has forced the firm to slash its forecasts for 2024.
It had previously hoped for profit before tax of between £20m and £25m, but it now expects between £10m and £12m.
The sofa retailer also told investors consumer demand for sofas has dropped 10%.
In a statement, DFS said: “Whilst the economic outlook remains hard to predict we expect the widely predicted lower inflation and interest rate environment to have a positive impact on upholstery market demand levels, with the declines experienced across the last three years starting to reverse and the market slowly recovering in our 2025 financial year.
“We are well-placed to capitalise on any market recovery given our market leadership position, the operational leverage in the business and the progress we are making on our cost base.”
Meanwhile, analysts at investment bank Peel Hunt said: "We believe there is a great business here and others will be feeling the pain more severely than DFS right now.
"Conditions continue to be almost unplayable for the upholstery retailers, with difficult selling conditions compounded by cost pressures."
FTSE 100
The UK's flagship share index, the FTSE 100, was down 15-points at 8,199 shortly after opening this morning.
Brent crude oil futures were down 0.36%, trading at $82.30 a barrel.
Companies reporting today
- Crest Nicholson Holdings - Half Year Results
- Halma - Full Year Results
- Virgin Money - Half Year Results