Sofa retailer DFS Furniture has updated its profit forecast after a successful winter sales period and a boost in orders. The company, listed on the London Stock Exchange, revealed a 2.3% increase in orders from its DFS and Sofology brands during the six months leading up to December 28, compared to the same period in 2025. This growth comes as DFS also credited its use of data to drive further sales across its brands.
Gross sales for the year are expected to increase by nearly 9%, a positive sign for the company as it enters the crucial winter sale period. DFS reported that its promotions, including TV advertisements and national marketing campaigns, have played a pivotal role in driving demand for its sofas and furniture. The winter sale trading period performed in line with expectations, DFS told investors.
Improved Profit Forecast Amid Market Uncertainty
The company now expects underlying pre-tax profits for the first half of the year to be in the range of £30 million to £31 million, representing an increase of up to £14 million from the previous year. This upward revision in the forecast is attributed to the strong sales performance in the early part of the year. DFS has raised its full-year pre-tax profit forecast to between £43 million and £50 million, surpassing its previous estimate of £41 million.
Despite the positive performance, DFS cautioned that the broader economic outlook remains unpredictable. Consumer confidence has been shaken by reports of tightened budgets and a reluctance to make significant purchases, which could impact future sales growth. However, CEO Tim Stacey remained optimistic, noting that leveraging data and cultivating DFS’s unique corporate culture has helped the company maintain strong margins and manage costs effectively in a generally flat market.
DFS has continued to make progress on improving its gross margins, which it attributes to a combination of strategic data usage and cost management practices. The company’s ability to grow sales and profits despite a challenging economic environment underscores its resilience and commitment to navigating the uncertainty that lies ahead.
