DFS Furniture has issued a trading update for the 52-week year ended 29th June 2025. The group says it traded consistently through the period, with order intake up +10% YoY in both H1 and H2, supported by volume and AOV growth (full-year order intake growth measured on a 52-week versus 52-week basis was +10.2%). Both retail brands performed well, with DFS up +8.7% and Sofology up +16.2% YoY. "Our proprietary data shows the group has grown market share in the specialist upholstery sector in a period where the market remained subdued," says the retailer.
Gross sales, which are recognised on delivery of orders to customers, were up +5.8% YoY. This was lower than the level of order intake growth (which is measured on a 52-week versus 52-week basis) due to a shift in customer orders to ranges with longer lead times and the impact of the prior year being a 53-week financial reporting period, says DFS, which consequently is entering FY26 with a resilient order bank.
"We have maintained our focus on disciplined cost management and continued to improve our gross margins," the retailer continues. "This approach, in combination with the increase in gross sales, has resulted in expected YoY PBT(A) growth slightly above the top end of our guidance (£25m-£29m), up from £10.5m in FY24.
"The group's financial position has improved, with net bank debt (excluding capitalised leases) reducing in the period to around £107m (FY24 year-end stood at £165m)."
Group CEO Tim Stacey comments: "We are pleased to report that we expect profit for the full year to be slightly above the top end of our guidance. Our excellent first half performance set the foundation for our success, with strong trading through the rest of the year, with both our DFS and Sofology brands outperforming the market. We have continued to maintain a strong focus on disciplined cost management and improved our gross margins, leading to significant YoY profit growth. In addition, cash flow was healthy and our balance sheet is strengthening as we progress towards our target leverage range.
"Whilst the macro environment remains challenging our business is in great shape and I would like to thank our amazing colleagues for their support and commitment as we relentlessly focus on delivering against our strategy together. Looking forward, we are confident that the group is well positioned to drive attractive returns for shareholders as the market recovers, and we remain focused on delivering our medium-term ambition of £1.4b revenue and 8% PBT margins."
The group will announce its full-year results on 25th September.
