DFS Furniture (DFS) Trading Update summary

Profit and trading performance

• Full year underlying profit before tax expected slightly above top end of £25–29m guidance, up £20m year on year.

• Strong trading in both halves, with group order intake up 10% year on year, outperforming a subdued market.

• Gross sales rose 5.8% year on year, with resilient order bank entering FY26.

• Both DFS and Sofology brands delivered strong growth, with Sofology up 16.2% and DFS up 8.7%.

• Gross margin improvement and disciplined cost management drove profit growth.

Financial position and outlook

• Net bank debt reduced to around £107m from £165m at FY24 year end.

• Leverage improved to 1.4x from 2.5x, progressing toward 0.5x–1.0x target range.

• Healthy cash flow and strengthening balance sheet support future ambitions.

• Confident in delivering medium-term ambition of £1.4bn revenue and 8% PBT margins.

• Full year results to be announced on 25 September 2025.

Market position and strategy

• Gained market share in the specialist upholstery sector despite subdued market conditions.

• Integrated physical and digital retail network across UK and Ireland supports growth.

• Focus on affordable, responsible, and sustainable design and delivery.

• Growth initiatives and marketing activities driving customer acquisition.

• Strategy centers on delivering attractive shareholder returns as market recovers.