DFS Furniture PLC stands out in a weak UK retail market after beating expectations with a recent first-half update, according to UBS.
Gross sales rose 8.7% year on year in the first half of the 2026 financial year, ahead of consensus forecasts of 5%, as growth was driven by conversion of a strong order bank and steady demand.
Order intake increased 2.3% despite tough comparisons, implying market share gains in a broadly flat UK upholstery market.
UBS, which rates the shares a 'buy' with a 230p price target, said this performance contrasts with recent profit warnings and cautious commentary from retailers including Card Factory, Greggs and Dunelm, reflecting subdued consumer sentiment.
Looking ahead, the Swiss bank said: "we expect mid-term growth to be driven by an eventual recovery in consumer sentiment, an improved product mix as Sofology [the higher average order value business], increases as a % of sales, and continued brand and store expansion."
UBS Evidence Lab data shows 12-month rolling unique visitor growth at Sofology of 17% in January, suggesting ongoing share gains.