DFS profits rebound to £32.9m

DFS has announced it has returned to profit in the year ended 29 June 2025, posting a profit-before-tax of £32.9m, up from a loss of £1.7m.

Alongside this, the company saw its revenues jump 4.4% to £1.03bn, up from £987.1m in the previous year. It also saw its reported order intake rise 8.7%, while gross sales climbed to £1.39bn, up from £1.31bn in the previous period.

DFS stated that this was achieved with “leveraging scale and vertical integration”, as exclusive brand partnerships now represent more than 40% of brand sales.

Furthermore, the company stated that investments in product innovation and a proprietary data and insights platform, enhanced customer experience and investments in people, diversity and inclusion, had improved engagement and reduced attrition.

Looking ahead, DFS said that trading through the first 12 weeks of the new financial period is in line with its expectations. The company is comfortable with consensus and is planning for profit growth in FY26, despite its expectation for a subdued market in the near term.

Group CEO Tim Stacey said: “I believe that our customer proposition has never been in better shape and that all elements of our vertically integrated business model are working efficiently and effectively, leading to record net promoter scores.

“Through focusing on what we can control and executing our strategy we have grown profits and cash flows in a weak market environment.This would not have been possible without the passion and dedication of our colleagues and I would like to sincerely thank them all for their hard work and support for our business. The market demand drivers for the upholstery sector remain delicately balanced.”

He added: “Consumer confidence remains below the long term average and inflation remains elevated but housing transactions have been recovering, consumer savings levels are relatively high and interest rates look set to fall.

“Given the market share gains that we have made in the last few years, the recovery in our gross margins and the significant reduction in our cost base, despite inflation, I am optimistic about the future. We will continue to focus on what we can control and, even in a subdued market, we expect to grow our profit before tax in FY26 and further strengthen our balance sheet.”