DFS defies wet weather to double profit
Furniture retailer DFS almost doubled its half-year profit despite recording lower shop footfall as wet weather dampens sales across retail.
The London-listed company recorded a £30m profit in the first half of this year, almost double the £16m recorded the year prior, as revenue grew by nine per cent to £548m.
The wet weather has been hitting sales in retail and hospitality businesses across the country, as footfall to shopping centres fell by more than five per cent in February due to exceptionally high rainfall.
DFS notched £735m in gross sales, up nine per cent from the year before.
This half-year profit marks a dramatic recovery for the 57-year-old firm after it slumped to a loss in 2024, citing an “extremely challenging” consumer environment as it suffered from disruption to Red Sea shipping.
The company is rewarding investors with a 1p dividend, after not recommending one in its full-year results last September.
DFS said it is slashing supply costs and embracing AI to make the customer experience and its internal operations more efficient.
The company said it is leaning on exclusive partnerships with high-profile brands, having launched a new collection with Britain’s Got Talent’s Amanda Holden in December.
The furniture seller plans to continue its turnaround by investing in new Sofology stores – the sofa brand it owns – and expanding in the home decoration category.
DFS thrives in ‘market stress’
Analysts at Panmure Liberum said: “Despite a more uncertain macro backdrop, DFS now has more levers to drive share gains.
“Historically, the group has accelerated during periods of market stress, reinforcing confidence in its positioning.”
The broker expects DFS to make £46m in pre-tax profit this year, growing to £57m by 2028.
The firm stood by its £1.4bn full-year revenue target despite noting lower footfall and “delicately balanced” consumer confidence.
These targets are dependent on the company sustaining no supply-term disruption as a result of the war in the Middle East, DFS said – although it did not assess whether this is likely.
DFS is listed on the All-Share market and its share stands at 149.5p, down nearly 15 per cent in the year so far.