Sofology targets £300m in revenue as it expands UK presence

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Retailer Sofology saw its sales increase thanks to a high-profile ad campaign featuring actress Helena Bonham-Carter.

The Warrington-based company, now owned by DfS, plans to target revenues of around £300m with a pre-tax profit margin of 5-7% with plans to stretch the mark from 55 to 65-70 points sale as part of its medium-term projects.

In the year to June 26, 2022, Sofology opened seven new stores in Orpington, Glasgow, Poole, Ipswich, New Malden, Birmingham and Bristol with an additional store opening in September 2022 and another store planned for FY23.

During the year, Sofology enlisted BAFTA and Golden Globe winner Helena Bonham-Carter for its latest television ad campaign, titled Bring Imagination to Life, which introduced viewers to the quirks and stylistic flourishes of its seemingly magical house.

Commenting on the high-profile marketing campaign, Sofology said, “Our distinctive advertising builds on this differentiation, using well-known actors who are also celebrated for their own unique sense of style.

“Helena Bonham-Carter played a key role in Sofology commercials this year and her unique style and creativity proved to be a perfect fit for the Sofology brand.”

Sofology has also launched its “Sustainable Edit” collection which includes the “Spring-bond” product designed exclusively for Sofology as a replacement for foam interiors.

New product launches include the Brantwood and Midland Hill ranges in collaboration with TV presenter George Clarke.

Sofology’s plans were revealed when publicly traded DfS announced its financial results for the year.

DFS said it faced “the toughest year operationally” following challenges related to Covid-related supply issues, double-digit cost inflation and skills shortages, making fall the annual profit before taxes by 44.8%.

The business recorded underlying profits of £60.3m, down from £109.2m last year. Revenue rose 8.5% to £1.15bn from £1.06bn.

Sofology saw sales and brand contribution growth of 18% and 16% versus pre-pandemic FY19 pro forma comparators.

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