DFS Furniture plc reported a 48.7% increase in underlying profit before tax to £44.9 million for the 52 weeks ended June 28, 2026, driven by disciplined cost management and improved gross margins. Revenue rose 2.6% to £1.0575 billion, while gross sales climbed 2.3%, reaching a strategic 58% margin—up 160 basis points from 56.5% in the prior year. The company also reduced net bank debt by £38 million to £69 million, lowering leverage from 1.4x to 0.9x. A final ordinary dividend of 2.0p per share was proposed, bringing the total FY26 payout to 3.0p, following no dividend in the prior year. Free cash flow generated during the period amounted to £40.3 million.
Order intake declined 1.0% year-on-year for the group overall, though the Sofology brand grew 2.6% and the Home category (including beds, mattresses, and dining furniture) expanded 10.9%. In calendar year 2025, DFS held a 40% market share in the UK upholstery sector, though volumes remained about 20% below pre-pandemic levels. The first 12 weeks of FY27 saw a 2.5% year-on-year decline in order intake. Extreme weather in July and August contributed to footfall and demand slowdowns.
CEO Tim Stacey highlighted disciplined cost controls, margin expansion, and digital/technology-driven empowerment as key drivers. The company reiterated medium-term targets of £1.4 billion in revenue and 8% profit before tax margins, signaling a focus on sustained financial resilience amid market challenges.
