DFS Furniture 'observes a more positive trend' since September as it increases market share

Earlier in the year, DFS had warned that the upholstery market had “softened markedly” as the cost-of-living crisis weighed on customers.

However, in a statement issued to coincide with its annual meeting, DFS said: “Since early September we have observed a more positive trend, with group order volumes growing relative to FY22 (full year 2022) and also relative to the pre pandemic FY19 (full year 2019) financial year.

"We have also seen continued evidence of positive market share gains from the latest Barclays / CACI market data.”

DFS said its overall performance is in line with its mid case scenario, of around £36m profit before tax, for the full year.

"We would expect profits to be weighted towards the second half given the order intake profile we have seen year to date, our made to order business model and revenue being recognised on the delivery of orders to customers.”

The statement issued to investors added: “While the macroeconomic outlook is uncertain and inflationary pressures remain high, we remain focused on executing our strategy to lead furniture retailing in the digital age.

"Our business has proven to be resilient, and given our inherent strengths, we are well positioned to maintain our trend of market share gains across the economic cycle.

Tim Stacey, the chief executive, commented: "We are pleased to report that since mid September we have seen positive year-on-year order volume growth.

"While we continue to be watchful of the macro economic environment, we continue to take market share and our market leading position, inherent scale and proven strategy give us confidence in our future prospects."

In March 2022 the board started a share buyback programme of up to £25m and in September the company announced its intention to purchase a further £10m of shares. To date around £25m of shares have been purchased under the programme.

The board will provide further details on the group’s performance at the post close announcement which is due to be published in the middle of January 2023.

The DFS business was founded in 1969 by Graham Kirkham with a single store near Doncaster, trading as Northern Upholstery. It floated on the London Stock Exchange in 1993, with a market capitalisation of around £270m. By 2014, it had opened its 100th store in the UK.