DFS Furniture says consumer confidence remains "delicately balanced"

(Alliance News) - DFS Furniture PLC on Thursday said it has seen some softening in footfall since the financial half-year end, taking the shine off strong first half results.

In response, shares in the Doncaster, England-based furniture retailer were 6.3% lower at 140.00 pence each in London on Thursday morning.

DFS said that since the half year end "we have seen some softening in footfall linked to adverse weather conditions over the period and consumer confidence remains delicately balanced."

Nonetheless, DFS said it is comfortable reiterating guidance of full year underlying profit before tax and brand amortisation in the range of GBP43 million to GBP50 million.

"This assumes no material supply chain disruption resulting from current geo-political events impacting the timing of delivery of customer orders," DFS added.

In the 52 weeks to June 29, 2025, DFS reported underlying profit before tax and brand amortisation of GBP30.2 million.

Pretax profit nearly doubled to GBP30.3 million in the 26 weeks to December 28 from GBP15.8 million the year prior, DFS said.

Basic earnings per share increased 9.2% to 9.8 pence from 5.1p.

Gross sales grew 8.7% to GBP734.5 million from GBP675.6 million and revenue picked up 8.6% to GBP547.7 million from GBP504.5 million.

Gross margin improved to 57.8% from 56.7%, reflecting ongoing product margin improvement, normalisation of input costs, particularly freight rates, and the USD/GBP exchange rate.

"High profile exclusive brand partnerships reached record sales levels and are now being utilised in our growing Home (non-upholstery) proposition, cost of goods optimisation is driving gross margins up and our logistics platform is now being leveraged to deliver for third parties," DFS said.

DFS said 2.3% on-year order intake growth was achieved in a "subdued" market and against a strong comparator of 10.1%.

Strong free cash flow generation and cash discipline reduced net bank debt to GBP60.6 million from GBP116.7 million a year ago. DFS said debt is down over GBP100 million over the last eighteen months.

Recognising the improved financial position an interim dividend of 1.0p per share was declared against nil the year prior.

By Jeremy Cutler, Alliance News reporter

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