DFS PROFITS RISE AFTER AMANDA HOLDEN SOFA PARTNERSHIP

DFS reported a rise in annual profits, crediting part of the improvement to its partnership with Britain's Got Talent judge Amanda Holden. The furniture retailer said pre-tax profit reached £43.7 million for the year to June, up from £32.9 million a year earlier, while revenue rose 2.6% to £1.06 billion. Group chief executive Tim Stacey said the results showed "the fundamental strength, agility and resilience" of the company, citing disciplined cost management and improved gross margins of 58%. Chairman Steve Johnson said the Holden partnership "has ensured our brands remain at the forefront of the consumer's mind". DFS shares rose 0.3% on Thursday morning following the announcement.

DFS said order intake fell 2.5% over the 12 weeks since the end of June, following a 1% dip in the year to June 28, which it attributed to extreme weather affecting footfall and a "subdued demand environment". The company's Sofology brand posted a 2.9% rise in revenue to £306 million, outperforming 2% growth at the core DFS brand. The Amanda Holden range comprises three sofas named the "showstopper", the "luvvie" and the "olivier". DFS described its exclusive brand partnerships as continuing to "resonate" with customers despite the wider market conditions.

Looking ahead to the 2027 financial year, DFS said it remained "appropriately cautious" about the broader economic environment and its effect on consumer confidence, though it said it was "comfortable" with current market expectations and expects to outperform the wider market. The group said it is targeting a £5 billion share of the home furnishings market by expanding into beds, mattresses and dining room furniture. It also plans to grow its Sofa Delivery Company logistics arm, having opened the service to third-party retailers for the first time and reporting "very positive feedback".