The intake of DFS requests is increasing; It expects profits to rise by £8 million

Living room and upholstered furniture retailer DFS has reported growth in demand as it remains “cautiously optimistic” for next year.

According to its latest trading update for the 26-week reporting period to 29 December 2024, the group’s total orders rose 10.1% year-on-year despite a weak market backdrop, supported by the successful implementation of growth initiatives and higher-than-expected market share gains for both brands. , continuing Sofology’s improved order growth trajectory of +19.1% year over year.

Total delivered sales are expected to rise 1.4% year-on-year, with the order bank closing higher year-on-year, driven by continued Red Sea shipping delays and strengthening demand during the period, DFS said.

The retailer expects adjusted pre-tax profits for the H1 group to be £16-17 million, up +£7-8 million year-on-year, driven by higher sales, operating cost savings and improved gross margin, offsetting current inflationary increases. .

DFS added that the important winter sales trading period had begun “in line” with expectations with full-year profit growth and cash flow expected to be in line with current consensus.

Tim Stacey, Group CEO, said: “Although the market remains relatively weak, we continue to deliver our self-help initiatives having strengthened our position as a market leader, improving our gross margin and reducing our operating costs, all of which Help us achieve year-over-year profit growth.

“We remain focused on executing our plan and are cautiously optimistic despite rising inflationary pressures and a less positive market outlook for 2025. Looking to the future, we are confident that the group is well positioned to deliver attractive returns to shareholders as the market recovers and we are confident of that.” We remain focused on achieving our medium-term target of 8% of realized profits.”