DFS Furniture plc (LON: DFS) has announced an encouraging start to its financial year 2026, reporting order intake growth for the 19 weeks ended November 9, 2025.
This positive momentum, coupled with effective cost management, has positioned the company for strong year-on-year profit growth in the first half. Markets reacted favorably to the news, with initial gains seen in early trading.
The upholstery retailer reported that its proprietary banking data indicates that both the DFS and Sofology brands have outperformed a subdued market. The company's focus on scale, vertical integration, data utilization, and its unique culture is driving improved financial performance.
DFS is actively pursuing self-help cost initiatives, which are contributing to gross margin improvements and mitigating the impact of inflation. These measures are proving effective in bolstering profitability amidst a challenging economic environment.
The company expects to deliver robust year-on-year profit growth in the first half of FY26. This outlook is supported by trading momentum, a smoothly running supply chain, improved gross margins, and stringent cost control.
While acknowledging the broader macroeconomic uncertainties and the upcoming Autumn budget, DFS remains confident in achieving the range of consensus profit expectations. Analyst consensus profit before tax and brand amortisation currently sits at £40.6 million, with a range of £37.6 million to £43.0 million.
DFS is committed to executing its stated strategy and delivering value for all stakeholders. A further performance update is scheduled for January 20, 2026.
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.”
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