UK's DFS Furniture H1 revenue rises, helped by exclusive brand partnerships

DFS Furniture

19/03/2026 07:09

((This story was generated using AI and automation, please see
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    Overview
  
    * UK furniture retailer's H1 FY26 revenue grew 8.6% yr/yr in a subdued market
    * Adjusted pretax profit rose sharply, supported by operational leverage and cost discipline
    * Gross margin expanded by 110bps to 57.8%, aided by product margin improvement and lower freight costs

    
    Outlook
  
    * DFS reiterates full-year underlying PBT guidance of £43-50m, assuming no major supply chain disruption
    * Company maintains medium-term targets of £1.4bln revenue and 8% PBT margin
    * DFS says recent footfall softened due to adverse weather; consumer confidence remains delicately balanced

    
    Result Drivers
  
    * EXCLUSIVE BRANDS & TECHNOLOGY - Co said record sales from exclusive brand partnerships and technology-led products drove order intake and higher average order values
    * NON-UPHOLSTERY GROWTH - Double-digit order intake growth in Home (non-upholstery) category supported by increased marketing and expanded product ranges
    * GROSS MARGIN GAINS - Margin improvement attributed to product margin initiatives, lower freight rates, and favourable USD/GBP exchange rate

    
Company press release:  ID:nRSS2303Xa 
    
    Key Details
  
                               
                               
 Metric    Beat/Mis  Actual    Consensu
           s                   s
                               Estimate
                               
                               
 H1        Miss      GBP       GBP 734
 Revenue             547.70    mln (1
                     mln       Analyst)
 H1        Slight    GBP       GBP
 Adjusted  Beat*     30.90     30.80
 Pretax              mln       mln (1
 Profit                        Analyst)
 H1                  GBP        
 Pretax              30.30     
 Profit              mln       
    *Applies to a deviation of less than 1%; not applicable for per-share numbers.
    
    Analyst Coverage
  
    * The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
    * The average consensus recommendation for the home furnishings peer group is "buy."
    * Wall Street's median 12-month price target for DFS Furniture PLC is GBp247.00, about 65.2% above its March 18 closing price of GBp149.50
    * The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 11 three months ago

    
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact .

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)