British furniture giant DFS has delivered an optimistic trading update, raising its profit expectations for the year following a robust performance over the crucial winter period.
Strong Sales Drive Improved Outlook
The retailer, which operates the DFS and Sofology brands, reported a 2.3 per cent increase in orders year-on-year for the six months leading up to 28 December. This positive momentum has led the company to upgrade its financial projections.
DFS now anticipates its full-year gross sales will grow by close to 9 per cent, a rise supported by extensive national marketing campaigns. Consequently, the forecast for underlying pre-tax profits has been lifted to a range of £43 million to £50 million. This surpasses the previous guidance of around £41 million.
A Note of Caution Amidst Growth
Despite the encouraging figures, the company struck a note of caution regarding the broader economic landscape. DFS stated that the macroeconomic and consumer outlook remains hard to predict following a period of recognised weakness.
The retailer acknowledged widespread reports that consumers are continuing to tighten their budgets and delay making significant purchases, such as big-ticket furniture items. This environment of uncertainty persists even as the company's own promotional strategies have gained traction.
Winter Promotions Key to Performance
The successful start to its winter sale period was highlighted as a significant factor in the improved performance. This key trading season is vital for retailers in the home furnishings sector, and DFS's results suggest its promotional strategy resonated with shoppers.
The update, issued on Tuesday 20 January 2026, reflects a business navigating a challenging consumer climate but managing to find growth through targeted sales initiatives and brand strength. The coming months will test whether this positive trend can be sustained against the unpredictable economic backdrop.
