Optimism at DFS as it achieves growth against unpredictable backdrop

Gross sales were up 2.3 per cent to £1,420.1m (FY 25: £1,388.3m), with revenues rising 2.6 per cent to £1,057.5m (FY 25: £1,030.3m). Underlying pre-tax profits rose to £44.9m from £30.2m.

DFS said it has now grown its position to a record 40 per cent value share of the UK upholstery market.

Tim Stacey, group chief executive officer, said: “The performance delivered in FY 26 demonstrates the fundamental strength, agility and resilience of the DFS Group.

“By maintaining disciplined cost management, improving gross margins to 58 per cent 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. Looking further ahead, we remain fully focused on achieving our medium-term £1.4bn revenue and eight per cent profit before tax margin targets and create sustained, long-term value for all our stakeholders.”

DFS added its “distinct brand propositions” provided resilience with Sofology outperforming the wider market, delivering order intake growth of 2.6 per cent.

The business said it also delivered 10.9 per cent order intake growth in its Home category (beds, mattresses, dining, living room furniture).

The retailer said its showroom refit programme continues to be a success, with the introduction of mezzanines in a select number of showrooms enabling the company to showcase its new Home ranges to a broader audience.

In its outlook statement, DFS said it expects to achieve moderate profit growth in FY 27 in line with analyst consensus of a £48m pre-tax profit.

It noted that core UK upholstery market volumes still remain approximately 20 per cent below pre-pandemic levels.

This article was authored by Unknown for The Business Desk and published under the title 'Optimism at DFS as it achieves growth against unpredictable backdrop', on Optimism at DFS as it achieves growth against unpredictable backdrop | TheBusinessDesk.com. It is reproduced above in accordance with section 30(2) of the Copyright, Design and Patents Act 1988.