Upholstered furniture retailer DFS has reported an encouraging start to the year.

In its latest trading update during its AGM for the 19 weeks ended 9 November 2025, DFS said that the financial year has begun positively.

“Our three key enablers of scale and vertical integration, utilising data and harnessing our unique culture are strengthening our market leading proposition, resulting in improved financial performance.

“We have seen order intake growth across the first 19 weeks of FY26, against strong comparatives, and in line with our expectations. Our proprietary banking data indicates both our DFS and Sofology retail brands outperformed a market that remains subdued.

“We are pleased with the continued progress we are making with our self-help cost initiatives, driving improvements in gross margin and helping to mitigate the impact of inflation.”

As a result of the trading momentum, the continued smooth running of the supply chain, gross margin improvements and cost control, DFS expects to deliver strong year on year profit growth in the first half.

Looking further ahead, DFS added that it remains confident in the Group’s prospects and will continue to focus on executing its stated strategy.

Tim Stacey, Chief Executive, commented: “By continuing to execute our strategy we have made a strong start to the year. Despite the upholstery market remaining subdued, we have grown order intake across both our retail brands, ahead of the market, and progressed our gross margin and cost base initiatives leaving us in a good position to deliver strong first half year on year profit growth.

“Our customer proposition is in great shape and our medium-term outlook remains positive. Whilst the macroeconomic backdrop remains uncertain in the short term we will keep focusing on what we can control.”