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DFS Furniture shares surge on upgraded profit forecast

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DFS Furniture shares jumped 6.8% after the UK retailer raised its full-year profit guidance to £43-50 million, surpassing the £41 million market consensus. The upgrade follows a strong first half, with anticipated profit of £30-31 million, an 80% increase year-over-year.

The company's success stems from effective margin management and a 2.3% rise in group order intake, despite a flat market. Gross sales delivered grew 8.7% as the firm converted a large order backlog. CEO Tim Stacey credited their scale and vertical integration strategy for driving performance.

DFS also reported robust cash flow, cutting net debt from £107 million to roughly £60-61 million. Leverage improved from 1.4x to 0.8x. The company named Dominique Highfield as permanent CFO, set to join in May 2026. While the Winter sale started as expected, the firm noted the consumer outlook remains uncertain.