DFS FY profits seen in line with recently upgraded guidance

(Sharecast News) - Furniture retailer DFS Furniture said on Thursday that fullyear profits would come in at around �45m, within its recently upgraded �43m to �50m guidance range, despite a softer market backdrop in the second half.

DFS said its profit performance was supported by 2.7% revenue growth, grossmargin expansion and tight cost control, while strong cash generation helped cut net bank debt to about �69m from �107m a year earlier, reducing leverage to 0.9x.

The London-listed firm also noted that market conditions had weakened notably in H2, with demand hit by lower consumer confidence and reduced housing transactions, partly linked to the Iran War. Order intake slowed from +2.3% in H1 to 4.4% in H2, leaving the fullyear figure down 1.0%, broadly in line with the wider market. On a twoyear basis, order intake was up 9.1%, reflecting significant marketshare gains made in FY25.

Looking ahead, DFS said its position as the clear market leader, combined with decisive cost actions and a strengthened balance sheet, had improved resilience and left the business well placed to deliver its mediumterm ambitions.

Fullyear results for the 52 weeks to 28 June will be published on 24 September.

Chief executive Tim Stacey said: "Through the year we have made important strategic progress across the business while also delivering a strong financial performance. We have navigated the complex and changing market environment focusing on our customer propositions combined with disciplined cost management ensuring that we delivered our upgraded profit expectations despite the market softening in the second half.

"We remain firmly committed to our medium term ambitions of �1.4bn revenue and an 8% PBT margin, and I am confident that our strategy will drive strong shareholder returns as market conditions improve."

As of 1030 BST, DFS shares were down 5.72% at 2,554.08p.

Reporting by Iain Gilbert at Sharecast.com

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