DFS Furniture reports strong profit growth and outlines ambitious FY27 targets

DFS Furniture announced that its underlying profit before tax grew by £14.7 million to £44.9 million over the most recent financial year, supported by a 2.6 percent rise in revenue to £1,057.5 million. The group credited strict cost management, gross margin expansion to 58 percent and technology-driven efficiencies for the improvement. Strong free cash flow enabled the board to propose a final ordinary dividend of 2.0p per share.

CEO Tim Stacey said the business remains cautious amid macro-economic uncertainty but expects its size, culture and tech investments to deliver moderate profit growth in FY27, aligning with analyst forecasts. He also reiterated medium-term goals of £1.4 billion revenue and an 8 percent profit margin. The company operates 115 DFS stores, 56 Sofology outlets and employs over 4,500 staff across the UK.