DFS Furniture reports encouraging start to fiscal year

Investing.com -- DFS Furniture plc (LON:DFSD), the UK’s market-leading upholstered furniture retailer, on Friday reported a positive start to its financial year with order intake growth across the first 19 weeks of FY26.

The company said Friday that both its DFS and Sofology retail brands outperformed a "subdued" market, according to proprietary banking data covering 13 specialist upholstery retailers.

DFS highlighted progress with its self-help cost initiatives, which are driving improvements in gross margin and helping mitigate inflation impacts.

The company expects to deliver "strong year-on-year profit growth" in the first half due to trading momentum, smooth supply chain operations, gross margin improvements, and cost control.

"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," said Tim Stacey, Chief Executive.

The company remains comfortable with the range of consensus profit expectations, which analysts estimate at £40.6 million profit before tax and brand amortization (range:£37.6m to £43.0m).

DFS noted that while it’s still early in the financial year, and the company is mindful of the broader macroeconomic environment and uncertainty created by the upcoming Autumn budget, it remains confident in the Group’s prospects.

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