(Bloomberg) -- DFS Furniture Plc trimmed its annual pretax profit outlook by a third and warned that continued disruption in the Red Sea could defer another £4 million ($5 million) of profit to the following financial year.

The sofa maker now expects pretax before of £20 million to £25 million in 2024, down from a previous range of £30 million to £35 million, it said in a statement. The new guidance assumes that conflict in the Red Sea and the resulting delivery delays are resolved soon, which isn’t guaranteed.

DFS Furniture said market demand has dwindled over the past two months after a solid start at the beginning of the year. Order volumes were down around 16% across January and February.

Headwinds will continue for DFS until sofa market volumes recover to pre-pandemic levels, Jefferies analysts Andrew Wade and Grace Gilberg wrote in a note.

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