DFS profits jump despite subdued market as retailer eyes further growth

24th Sep 2026 10:00

(Sharecast News) - DFS Furniture reported a sharp rise in annual profits on Thursday and said it expected further growth in the current year despite remaining cautious over the consumer backdrop.

Underlying pre-tax profit and brand amortisation rose 48.7% to £44.9m in the year to 28 June, in line with the company's upgraded guidance. Reported pre-tax profit increased to £43.7m from £32.9m.

Full-year revenue increased 2.6% to £1.06bn, though the gross margin improved 160 basis points to 58.1%, reaching the group's strategic target.

Net bank debt fell by £38m to £69m, reducing leverage to 0.9 times, while the company reinstated its dividend with a proposed full-year payout of 3p per share.

Looking ahead, the furniture retailer said order intake was down 2.5% year-on-year in the first 12 weeks of FY27, in line with expectations, after extreme weather weighed on footfall and upholstery demand during July and August.

However, DFS said that while it remained cautious about the wider macroeconomic environment and expected subdued market conditions, "moderate profit growth" is still expected in FY27 due to operational execution and cost discipline, in line with the company-compiled consensus forecast for profit before tax and brand amortisation of £48m.

Chief executive Tim Stacey said: "Market uncertainty continues to influence consumer confidence and footfall, and we remain appropriately cautious regarding the broader macroeconomic environment."

DFS also reiterated its medium-term targets of £1.4bn in revenue and an 8% pre-tax profit margin.

The stock was 0.6% higher at 145.93p by 1129 BST.

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