Upholstered furniture retailer DFS has delivered upgraded profit guidance, despite softer market conditions.
According to its full year trading update for the 52 week year ending 28 June 2026, pre-tax profit is expected to be around £45m, within its previously upgraded guidance of £43-50m and up around +£15m year on year despite weaker market demand in H2.
DFS said that profit performance is underpinned by 2.7% revenue growth, gross margin expansion and continued cost discipline.
During the year, the business has continued to invest in innovation across its platforms and people, while achieving record customer net promoter scores (up +7% YoY) and sustained strong colleague engagement (up +19% YoY).
“Following signs of some market recovery in H1 there was a notable softening in market demand in H2,” DFS said. “This was driven by a decline in consumer confidence and housing transactions, in part related to the Iran War.
“This softening is reflected with Group H1 order intake of +2.3% YoY reducing to -4.4% YoY in H2. Full year order intake of -1.0% was broadly in line with the market. On a Yo2Y basis growth was +9.1% reflecting significant market share gains in FY25.
“Our position as the clear market leader, combined with the decisive cost actions over the past three years and the strengthening of our balance sheet has improved the business’s resilience and we remain positive about the medium-term ambitions of the Group.”
Tim Stacey, Group Chief Executive, added: “I would like to express my gratitude to all our talented and dedicated colleagues, whose continued commitment strengthens the DFS Group and ensures outstanding products and services for our customers.”
“Through the year we have made important strategic progress across the business while also delivering a strong financial performance. We have navigated the complex and changing market environment focusing on our customer propositions combined with disciplined cost management ensuring that we delivered our upgraded profit expectations despite the market softening in the second half.
“Importantly, a strong profit performance and capital rigour has enabled us to further reduce our net bank debt and improve our leverage position, providing the Group with a solid financial foundation to navigate any further market volatility.
“We remain firmly committed to our medium term ambitions of £1.4bn revenue and an 8% PBT margin, and I am confident that our strategy will drive strong shareholder returns as market conditions improve.”
