Doncaster-based DFS Furniture plc published a trading update for the 52 week year ending June 28, 2026, saying that “following signs of some market recovery in H1 there was a notable softening in market demand in H2.”

DFS said this softening “was driven by a decline in consumer confidence and housing transactions, in part related to the Iran War.”

DFS said full year underlying profit before tax and brand amortisation is expected to be around £45 million, “within our previously upgraded guidance of £43-50m and up around +£15m year on year despite weaker market demand in H2.”

On “market backdrop” the Doncaster firm said: “Following signs of some market recovery in H1 there was a notable softening in market demand in H2. This was driven by a decline in consumer confidence and housing transactions, in part related to the Iran War.”

DFS CEO Tim Stacey said: “I would like to express my gratitude to all our talented and dedicated colleagues, whose continued commitment strengthens the DFS Group and ensures outstanding products and services for our customers.

“Through the year we have made important strategic progress across the business while also delivering a strong financial performance.

“We have navigated the complex and changing market environment focusing on our customer propositions combined with disciplined cost management ensuring that we delivered our upgraded profit expectations despite the market softening in the second half.

“Importantly, a strong profit performance and capital rigour has enabled us to further reduce our net bank debt and improve our leverage position, providing the Group with a solid financial foundation to navigate any further market volatility.

“We remain firmly committed to our medium term ambitions of £1.4bn revenue and an 8% PBT margin, and I am confident that our strategy will drive strong shareholder returns as market conditions improve.”