The DFS and Sofology brands have both enjoyed ‘strong’ recent trading and have increased market share.
Parent DFS Group says that it expects profit before tax and brand amortisation for the first half.
‘The financial year has begun positively. Our three key enablers of scale and vertical integration, utilising data and harnessing our unique culture are strengthening our market leading proposition, resulting in improved financial performance.
‘We have seen order intake growth across the first 19 weeks of FY26, against strong comparatives, and in line with our expectations. Both our DFS and Sofology retail brands outperformed a market that remains subdued. We are pleased with the continued progress we are making with our self-help cost initiatives, driving improvements in gross margin and helping to mitigate the impact of inflation.
‘As a result of the trading momentum, the continued smooth running of the supply chain, gross margin improvements and cost control, we expect to deliver strong year on year profit growth in the first half.’
‘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,’ says Tim Stacey, DFS Group chief executive.
‘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.’
The group says its proprietary Lloyds banking data covering 13 specialist upholstery retailers shows it continues to gain market share while analysts have forecast profits of between £37.6m and £43m.
