DFS uplifts full-year profit forecast as interim earnings rise
DFS returned to profit in its latest interim results, as the furniture giant gained market share during the first half.
DFS recorded an uplift in its half-year results, as the furniture giant gained market share during the financial period.
The retailer’s underlying profit almost doubled from £8.7m to £17m for the 26 weeks ended 29 December 2024.
Gross sales were up 1.4% to £675.6m during the period, which the furniture specialist attributed to a strengthened trading performance which left its order bank in a resilient position entering its second half.
Revenue dipped 0.1% to £504.5m, which DFS attributed to investment in its interest free credit offer to maximise its cash gross margins. Gross margin rose 0.7 percentage points to 56.7% during the period.
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The company insisted trading during the first 10 weeks of its second half had remained strong, with its order intake rising from 10% in H1 to 11%.
DFS said it now expected to deliver profit between £25m – £29m assuming no additional supply chain disruptions.
DFS group CEO Tim Stacey said: “Our improved profit performance in the first half is testament to the strength of our customer proposition, the dedication of our colleagues and our collective focus on operational excellence, evidenced through increased market shares and customer satisfaction scores.
“We are on track to deliver full year profit performance ahead of market expectations and our confidence in the group’s capabilities and future potential has never been higher.”
In January, DFS witnessed “improved performance,” driven by market share gains, cost efficiencies, and improved gross margins.
The brand posted a pre-tax profit of approximately £16–17m for the 26 weeks to 29 December, representing a year-on-year increase of £7–8m.
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