Finance
UK's DFS Furniture profit beats on higher orders despite muted consumer sentiment
Published by Global Banking and Finance Review
Posted on September 25, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on September 25, 2025
2 min readLast updated: January 21, 2026
DFS Furniture's profit beats estimates, driven by higher orders despite low consumer confidence and high inflation.
(Reuters) -British sofa retailer DFS Furniture posted annual profit above market estimates on Thursday, helped by higher order intake despite a subdued market, which the company signalled is persisting amid low consumer confidence and high inflation.
British retailers are contending with a cooling market and affordability challenges as households prioritize essential spending over big-ticket purchases. However, DFS has been managing costs to boost profits and has seen strong demand.
"Consumer confidence remains below the long term average and inflation remains elevated but housing transactions have been recovering, consumer savings levels are relatively high and interest rates look set to fall," CEO Tim Stacey said.
"The market demand drivers for the upholstery sector remain delicately balanced."
The company scrapped its annual dividend citing an uncertain macro environment. However, DFS said it was planning for profit growth in fiscal 2026 after trading in the new financial year was in line with its expectations.
At least two brokerages flagged that DFS seems to be gaining market share, which would boost its business and were upbeat on current result, despite the "vague" comments on trading and sentiment.
It reported 30.2 million pounds ($40.62 million) in adjusted annual profit before tax and brand amortisation for the year ended June 29 against analyst expectations of 27.9 million pounds, according to a company-compiled consensus.
($1 = 0.7435 pounds)
(Reporting by DhanushVignesh Babu and Pushkala Aripaka in Bengaluru; Editing by Rashmi Aich)
DFS Furniture reported an adjusted annual profit before tax of 30.2 million pounds, exceeding analyst expectations of 27.9 million pounds.
DFS Furniture scrapped its annual dividend due to an uncertain macro environment, although it is planning for profit growth in fiscal 2026.
Consumer confidence remains below the long-term average, and households are prioritizing essential spending over big-ticket purchases, impacting the market.
The market demand drivers for the upholstery sector remain delicately balanced, with recovering housing transactions and elevated inflation affecting consumer behavior.
At least two brokerages noted that DFS Furniture seems to be gaining market share, which could boost its business despite vague comments on trading and sentiment.
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