DFS Furniture reported a "resilient" trading performance in its preliminary results for the 52 weeks ended 29 June 2025, with revenue up 4.4% year-on-year and underlying profit before tax up £19.7m to £30.2m, slightly above guidance. The retailer highlighted market share gains, record customer Net Promoter Scores (NPS), and the early completion of its £50m Cost to Operate programme.
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Key drivers included exclusive brand ranges now contributing over 40% of DFS brand sales, gross margin improvements through cost optimisation, and efficiency gains in manufacturing and logistics. Investment in technology-led product innovation and proprietary data platforms also supported customer engagement.
Order intake grew 8.7% despite a subdued market, and strong free cashflow of £57.8m reduced net debt to £107m and bank leverage to 1.4x, though DFS noted leverage remains above its target range of 0.5x-1.0x, prompting a decision not to recommend a FY25 dividend.
CEO Tim Stacey said DFS's "customer proposition has never been in better shape" and expressed optimism for FY26 profit growth, citing gross margin recovery, cost discipline, and market positioning. The company reaffirmed its medium-term targets of £1.4bn revenue and 8% PBT margins.
Source: www.furniturenews.net
