Living room and upholstered furniture retailer DFS has reported a growth in order intake as it remains “cautiously optimistic” for the year ahead.

According to its latest trading update for the 26-week financial reporting period to 29 December 2024, Group order intake was up 10.1% YoY notwithstanding a weak market backdrop, supported by successful implementation of growth initiatives and higher than expected market share gains for both brands, with Sofology’s improved order intake growth trajectory continuing +19.1% YoY.

DFS said that gross delivered sales are expected to be up +1.4% YoY, with order bank closing higher YoY, driven by continued Red Sea shipping delays and order intake strengthening through the period.

The retailer expects H1 Group adjusted pre-tax profit to be c£16-17m, up c+£7-8m year-on-year, driven by higher sales, operating cost savings and gross margin improvement, which more than offset current inflationary increases.

DFS added that its important Winter Sale trading period has started “in line” with expectations with full year growth in profits and cash flow expected to be in-line with current consensus.

Tim Stacey, Group Chief Executive, said: “While the market remains relatively subdued, we are continuing to deliver on our self-help initiatives having strengthened our position as the clear market leader, improved our gross margin and reduced our operating costs, all of which have helped us to deliver year on year profit growth.

“We remain focused on executing our plan, and are cautiously optimistic despite the increased inflationary pressures and less positive market outlook for 2025. Looking forward, we are confident that the Group is well positioned to drive attractive returns for shareholders as the market recovers and we remain focused on delivering our 8% PBT medium-term target.”