DFS Furniture plc (LON:DFSD), the leading upholstered furniture retailer in the UK, has announced a promising start to its financial year, marking growth in order intake across the first 19 weeks of fiscal year 2026.
In a statement released on Friday, the company revealed that both of its primary retail brands, DFS and Sofology, have outperformed the broader market. This assessment is based on proprietary banking data that tracks the performance of 13 specialist upholstery retailers, indicating that DFS is navigating a "subdued" market environment more effectively than its competitors.
Key to this early success has been the company's focus on "self-help cost initiatives." These strategic measures are credited with improving gross margins and helping to offset the impact of inflation. As a result, DFS expects to deliver strong year-on-year profit growth for the first half of the year. The company cites trading momentum, smoother supply chain operations, and disciplined cost control as the primary drivers behind this positive outlook.
"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," stated Tim Stacey, Chief Executive of DFS Furniture.
Looking ahead, the company remains comfortable with current analyst consensus for profit expectations, which project a profit before tax and brand amortization of approximately £40.6 million (ranging between £37.6m and £43.0m). While noting that it is still early in the fiscal year and acknowledging potential uncertainties from the broader macroeconomic environment and the upcoming Autumn budget, DFS remains confident in the Group's overall prospects.
