Shares in retailer DFS Furniture PLC (LSE:DFS) rose almost 5% as the green shoots of recovery poked through in its full-year results statement - though they were hard to spot initially.
That's because the retailer reported a 49% drop in annual earnings, attributing the decline to lower demand and challenging market conditions.
Despite the setback, DFS reiterated its forecast for a low single-digit improvement in 2024 profit, which is expected to range between £30 million and £35 million.
And it stated it is now in its strongest operational position since the pandemic began.
"Forecasting the specific timing and pace of the recovery is challenging," added CEO Tim Stacey, although he expressed confidence in the eventual recovery of the upholstery market.
The company indicated that the bulk of the profit would be realised in the second half of the year, citing weak demand at the end of 2023.
High inflation and rising borrowing costs provided a toxic cocktail for DFS in the year ending June 30. The group operates over 100 sofa showrooms.
The stock advanced 4.9% to 112.45p in early trade.