DFS lifts profit outlook after strong HY trading

DFS Furniture has revealed that it expects underlying profits before tax to be between £30m and £31m for the 26-week period to 28 December 2025, up £13m to £14m year-on-year, as it benefited from higher margins, cost control and improved cash generation. 

For the full year, the group now anticipates profits before tax of between £43m and £50m, which is ahead of the current market consensus of £41m, following continued positive trading in the second half to date. 

It comes as the retailer’s order intake during the half year rose 2.3% compared with the same period last year, with growth at both the DFS and Sofology brands, in what the company described as a broadly flat market. Gross sales, which are recognised on delivery, are expected to be up about 8.7%, driven by the fulfilment of a previously elevated order book.

Strong cash generation during the period reduced net bank debt from £107m at the 2025 financial year end to about £60m to £61m at 28 December. Reported leverage also improved from 1.4 times to 0.8 times, within the group’s target range.

The company said trading during the key winter sales period had started in line with expectations, although it noted that the wider consumer and macroeconomic outlook remained uncertain.

DFS also announced the appointment of Dominique Highfield as chief financial officer, effective May 2026. Highfield is currently chief financial officer at Bloom and Wild and has previously held senior roles at Purplebricks, Pentland and Amazon. She will replace interim chief financial officer Marie Wall, who is stepping down following a handover period.

The group is due to publish its interim results on 19 March 2026.

Tim Stacey, group chief executive of DFS, said: “Our three key enablers of scale and vertical integration, utilising data and harnessing our unique culture are strengthening our market leading proposition and driving order intake across both DFS and Sofology in a broadly flat market. 

“We have continued to make good progress growing our gross margins and managing our cost base effectively. As a result, I am pleased to report an upgrade to our full year profit expectations following a strong first half performance.”

He added: “I am confident that the business is well positioned to continue delivering against our strategy and we remain committed to achieving our medium term targets of £1.4bn revenue and 8% PBT margin and delivering attractive returns for our shareholders as the market recovers.”