DFS Furniture (LSE:DFS), in a trading update on Friday, told investors that upholstery market demand softened further over the seven weeks to 8 November, with full-year profit expectations now carrying "a wider range of potential outcomes" as a result.
The UK's largest specialist retailer of upholstered furniture had already flagged a 2.5% year-on-year decline in order intake over the first 12 weeks of its 2027 financial year at its September results, which it described at the time as in line with expectations.
Proprietary banking data covering 14 specialist upholstery retailers indicates that DFS's core retail brands, DFS and Sofology, have continued to outperform the wider sector despite the tougher backdrop, the company said.
DFS reported underlying pre-tax profit before brand amortisation of £44.9m for the 52 weeks to 28 June, up 48.7% from £30.2m a year earlier, alongside a reduction in net bank debt to £69m and leverage easing to 0.9x from 1.4x.
Tim Stacey, chief executive, said the consumer environment has remained challenging through the autumn but that DFS is "well placed within it as the clear market leader with unmatched scale, brand resonance and operational strength", adding the group is focused on driving cash margins and maintaining tight cost control through the Black Friday and Winter Sale trading periods.
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The company also pointed to progress on its non-upholstery Home growth strategy, with a fifth mezzanine floor launched at its DFS Leeds Birstall showroom in October trading in line with expectations, following on from the mezzanine expansion plan highlighted at the FY26 results as a low-risk driver of long-term growth.
DFS said it will provide a further update at its half-year trading statement on 21 January 2027.