DFS Furniture PLC, a leading UK retailer of living room and upholstered furniture, announced its preliminary results for the 52 weeks ended 29 June 2025. The company reported significant profit growth and a reduction in leverage, driven by strategic execution and a strong customer proposition. Key highlights include
**Financial Performance**
Revenue increased by 4.4% to £1030.3 millionwith gross sales up 5.8% to £1388.3 million.
Underlying profit before tax (PBT) rose by £19.7 million to £30.2 million, slightly <mark style="background-color:yellow">above</mark> previous guidance.
Reported profit before tax increased significantly to £32.9 million from a loss of £1.7 million in FY24.
Net bank debt reduced by £57.8 million to £107.0 million, with bank leverage improving to 1.4x from 2.5x.
**Operational Highlights**
Like-for-like order intake growth of 10.2%, with both DFS and Sofology brands gaining market share.
Gross margin expanded by 70 basis points to 56.5%, driven by cost optimization and commercial proposition improvements.
Achieved £50 million in cost savings one year ahead of schedule, enhancing operational efficiency.
**Strategic Initiatives**
Strengthened customer proposition through exclusive brand partnerships, technology-led innovation, and enhanced customer experience.
Focused on data and technology to drive product innovation and improve operational efficiency.
Invested in people and culture, improving colleague engagement and reducing attrition.
**Outlook**
Trading in the first 12 weeks of FY26 is in line with expectations, with the company planning for profit growth despite a subdued market.
No dividend recommended for FY25 due to economic uncertainty and focus on reducing debt.
Long-term confidence in achieving medium-term targets of £1.4 billion revenue and 8% PBT margin.
DFS Furniture PLC remains optimistic about its future, leveraging its market-leading position, innovative products, and strong operational platforms to drive growth and profitability.