DFS Furniture PLC (LSE:DFS) said the new financial year has begun positively, with order intake rising over the first 19 weeks of its 2026 financial year.
In a trading statement ahead of its annual general meeting, the furniture retailer said orders increased against strong comparatives and remained in line with expectations. Its proprietary banking data indicated that both the DFS and Sofology brands outperformed a market that stayed subdued.
The group said cost initiatives continued to support gross margin improvements and helped offset inflation. Trading momentum, supply chain performance, margin gains and cost control put it on track to deliver strong year-on-year profit growth in the first half, it added.
DFS said it remains comfortable with the current range of consensus profit expectations. It added that the outlook stays positive despite the macroeconomic backdrop and uncertainty around the Autumn Budget.
Chief executive Tim Stacey said: "By continuing to execute our strategy, we have made a strong start to the year. Despite the upholstery market remaining subdued, we have grown order intake across both our retail brands, ahead of the market, and progressed our gross margin and cost base initiatives, leaving us in a good position to deliver strong first-half year-on-year profit growth.
"Our customer proposition is in great shape, and our medium-term outlook remains positive. Whilst the macroeconomic backdrop remains uncertain in the short term, we will keep focusing on what we can control."