DFS delivers robust profit growth despite subdued market
DFS has said it delivered robust financial progress in the year to 28 June with increased profit despite a subdued market.
In the 52 weeks to 28 June, the furniture retailer’s revenue increased to £1.06 billion from £1.03 billion in the prior year.
Subscribe to TRBPre-tax profit was also up, climbing to £43.7 million from £32.9 million a year earlier.
Meanwhile, underlying pre-tax profit increased by 48.7% to £44.9 million in the period.
The retailer said its Sofology brand put in strong performance with order intake growth of 2.6%, supported by its higher-income customer base, strategic range refreshes, and successful promotional execution.
Giving an update on more recent trading, DFS said order intake in the first twelve weeks of its new financial year is down 2.5%, in line with expectations, after the heatwave in July and August impacted footfall and consumer demand for upholstery items.
Tim Stacey, DFS group chief executive, said: “The performance delivered in FY26 demonstrates the fundamental strength, agility and resilience of the DFS Group. By maintaining disciplined cost management, improving gross margins to 58% and empowering our colleagues through data and technology, we delivered robust earnings growth and significantly strengthened our balance sheet.
“Looking ahead into FY27, market uncertainty continues to influence consumer confidence and footfall, and we remain appropriately cautious regarding the broader macroeconomic environment. However, our scale, culture and technology investments – all fuelled by our new purpose and values – provide us with a clear advantage.
“We remain confident in our ability to outperform the market and deliver moderate profit growth in FY27, where we are comfortable with current analyst PBT forecasts.
“Looking further ahead, we remain fully focused on achieving our medium-term £1.4bn revenue and 8% PBT margin targets and create sustained, long-term value for all our stakeholders.”
