14th Nov 2025 09:53
(Alliance News) - DFS Furniture PLC on Friday saw its shares rise in early trading as the furniture retailer guided "strong" interim profit growth following a positive start to financial 2026.
Ahead of its annual general meeting on Friday, Doncaster, England-based DFS said trading in the 19 weeks to November 9 has begun "positively", with it reporting a strengthening of its market proposition.
Its shares were up 1.6% at 161.00 pence on Friday morning in London.
Order intake rose on the prior year despite strong comparatives, said DFS, and was in line with its expectations.
The company added that its retail brands DFS and Sofology have outperformed a market that continues to be subdued.
Owing to the strong trading, margin improvements, cost control and the "smooth running" of its supply chain, DFS guided "strong" half-year profit growth on the prior year.
DFS said it remains mindful of the broader macroeconomic environment, noting the "uncertainty" stemming from the upcoming UK budget statement on November 26.
However, with regard to the financial year as a whole, the company said it remains comfortable with the existing analyst consensus range for profit expectations.
DFS noted profit before tax and brand amortisation consensus of GBP40.6 million, with a range of GBP37.6 million to GBP43.0 million. This would be up from GBP30.2 million reported in financial 2025.
"By continuing to execute our strategy we have made a strong start to the year. Despite the upholstery market remaining subdued, we have grown order intake across both our retail brands, ahead of the market, and progressed our gross margin and cost base initiatives leaving us in a good position to deliver strong first half year on year profit growth," said Chief Executive Tim Stacey.
"Our customer proposition is in great shape and our medium-term outlook remains positive. Whilst the macroeconomic backdrop remains uncertain in the short term we will keep focusing on what we can control."
By Christopher Ward, Alliance News reporter
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