British furniture giant DFS has delivered a positive trading update, upgrading its annual profit forecast following a robust performance over the vital winter sales period.
Strong Sales Drive Profit Upgrade
The London-listed retailer announced that its crucial winter sale trading period, which began in December 2025, started strongly and in line with expectations. This promotional drive, supported by extensive national marketing campaigns including television adverts, is a primary catalyst for the company's annual sales.
Over the six months leading up to 28 December 2025, DFS reported a 2.3 per cent year-on-year rise in orders. Both its flagship DFS brand and the Sofology brand contributed to this uplift. Looking ahead, gross sales—measured upon customer delivery—are projected to climb by almost 9 per cent for the full financial year.
Financial Performance Exceeds Expectations
As a result of this stronger trading, DFS now expects to report an underlying pre-tax profit of between £43 million and £50 million for the full year. This is notably above the £41 million it had previously forecasted to investors.
For the first half of its financial year, underlying pre-tax profits are anticipated to be around £30 million to £31 million. This represents an increase of up to £14 million compared to the same period last year, signalling a significant recovery.
Data-Driven Strategy in a Tough Market
Chief Executive Tim Stacey attributed the company's resilience to its strategic use of data and company culture. He stated that this approach was helping to drive more orders across its brand portfolio "in a broadly flat market."
"We have continued to make good progress growing our gross margins and managing our cost base effectively," Stacey added, highlighting the company's operational focus.
Despite the upbeat news, DFS struck a note of caution regarding the wider economic landscape. The company acknowledged that the macroeconomic and consumer outlook remains hard to predict, referencing a period of weakness where consumers have been widely reported to be tightening their budgets and delaying major purchases like furniture.
The update comes against a backdrop of confirmed economic data, with the Office for National Statistics (ONS) having reported a UK economic slowdown in the third quarter of 2025.
