Upholstered furniture retailer DFS expects profits to exceed the top end of its previous guidance as it continues to gain market share.

According to its full year trading update for the 52-week period ending 29 June 2025, order intake has increased 10% year-on-year in both H1 and H2, supported by volume and average order value growth.

DFS said that both its retail brands performed well, with DFS up +8.7% and Sofology up +16.2% year-on-year due to successful implementation of its growth initiatives.

“Our proprietary data shows the Group has grown market share in the specialist upholstery sector in a period where the market remained subdued,” the group said.

“Gross sales, which are recognised on delivery of orders to customers, were up +5.8%. This is lower than the level of order intake growth due to a shift in customer orders to ranges with longer lead times and the impact of the prior year being a 53-week financial reporting period. Consequently, the Group enters FY26 with a resilient order bank.”

DFS added that it has maintained its focus on “disciplined cost management”, which has continued to improve gross margins. This approach, in combination with the increase in gross sales, has resulted in expected year-on-year pre-tax profit growth slightly above the top end of its guidance (£25m-£29m), up from £10.5m (FY24).

Tim Stacey, Group Chief Executive, commented: “We are pleased to report that we expect profit for the full year to be slightly above the top end of our guidance. Our excellent first half performance set the foundation for our success, with strong trading through the rest of the year with both our DFS and Sofology brands outperforming the market.

“We have continued to maintain a strong focus on disciplined cost management and improved our gross margins, leading to significant year on year profit growth. In addition, cash flow was healthy and our balance sheet is strengthening as we progress towards our target leverage range.

“Whilst the macro environment remains challenging our business is in great shape and I would like to thank our amazing colleagues for their support and commitment as we relentlessly focus on delivering against our strategy together.

“Looking forward, we are confident that the Group is well positioned to drive attractive returns for shareholders as the market recovers and we remain focused on delivering our medium term ambition of £1.4bn revenue and 8% PBT margins.”