DFS Furniture flags further softening of demand, shares slump

(Sharecast News) - DFS Furniture slumped as it highlighted "subdued" market demand and cautioned that full-year profit expectations carry a "wider range of potential outcomes" against a backdrop of fluctuating footfall and fragile consumer confidence.

In its preliminary results in September, the retailer had reported that group order intake over the first 12 weeks of FY27 had fallen 2.5% year-on-year, in line with its expectations.

In a trading update for the 19 weeks to 8 November ahead of its annual general meeting on Friday, DFS said upholstery market demand had softened further, reflecting continued pressure on household budgets and reduced consumer confidence.

DFS said it has not been immune to this climate, but proprietary banking data indicates that its core retail brands - DFS and Sofology - have continued to outperform the wider sector, "reflecting the strength and resilience of the group".

Chief executive Tim Stacey said: "While the consumer environment has remained challenging through the autumn, DFS is well placed within it as the clear market leader with unmatched scale, brand resonance and operational strength. As we enter the important upcoming trading periods, we are focused on what we can control; taking proactive commercial actions to drive cash margins while maintaining tight control of our costs.

"Our proven model and strategic progress give us confidence in the group's resilience through the cycle and our ability to deliver long term value for all shareholders."

At 0840 GMT, the shares were down 4.9% at 127.50p.

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