olivLaw · European equity research
DFS Furniture plc DFS.L
United Kingdom · London Stock Exchange · ISIN GB00BTC0LB89 · Vertical: Listed companies from United Kingdom
DFS Furniture is a British furniture retailer focused on sofas and upholstered furniture, operating the dfs and Sofology brands. In fiscal 2026 the group continued its profit recovery, with a higher gross margin and lower net debt, against a fragile consumer demand backdrop.
At the close of 05 Nov 2026, DFS Furniture plc (DFS.L) stock was 1.39 GBP (+0.00% on the day), with market capitalisation 320.1 m GBP, P/E 9.4 on diluted EPS of 0.15 GBP over the last 12 months, dividend yield 0.72%, beta 0.53, 52-week range 1.15–2.00 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 44.2
- weak (30–45)
- Bollinger (20, 2)
- 1.32 – 1.52
- in the lower half of the band · %B 0.34 · band width 14.3%
- SMA 50 / 200
- 1.45 / 1.48
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -0.03 / -0.02
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | −5.1% | −0.6% | −4.5 pp | — |
| 3 months | −7.7% | −4.2% | −3.5 pp | — |
| 6 months | +8.2% | +4.3% | +3.9 pp | — |
| Year to date | −20.4% | +7.5% | −27.9 pp | — |
| 1 year | −8.6% | +9.9% | −18.5 pp | +5.8% |
| 3 years | +31.9% | +49.8% | −17.9 pp | +26.3% |
| 5 years | −49.0% | +42.8% | −91.8 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 0 percentile of its own 2-quarter history (min 9.7, median 13.0, max 16.4; quarters with earnings only).
Fiscal years
| Fiscal year | 2024 | 2025 | 2026 |
|---|---|---|---|
| Revenue | 987.1 m | 1.0 bn | 1.1 bn |
| Revenue YoY | unavailable | +4.4% | +2.6% |
| Net income | -4.4 m | 24.2 m | 34.9 m |
| Net income YoY | unavailable | unavailable | +44.2% |
| Diluted EPS | -0.02 | 0.10 | 0.15 |
| Diluted EPS YoY | unavailable | unavailable | +43.7% |
| net % | -0.4% | 2.3% | 3.3% |
| Free cash flow | 104.3 m | 172.2 m | unavailable |
Balance sheet & financial health
Fiscal year 2026 · 28 Jun 2026
- Cash
- 10.9 m GBP
- Financial debt
- 78.7 m GBP
- Net debt
- 67.8 m GBP
- Equity
- 288.4 m GBP
- Total assets
- 940.5 m GBP
- Debt / equity
- 0.27x
- Current ratio
- 0.25x
- ROE
- 12.9%
- ROA
- 3.6%
- FCF margin
- unavailable
Financial statements (source on every figure)
Revenue and net income (GBP)
Margins
Income statement · GBP
| Line | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 987.1 m | 1.0 bn | 1.1 bn | esef· 15 Oct 2026verified |
| Cost of revenue | 436.3 m | 448.6 m | 443.5 m | esef· 15 Oct 2026verified |
| Gross profit | 550.8 m | 581.7 m | 614.0 m | esef· 15 Oct 2026verified |
| Operating income | 41.3 m | 71.1 m | 75.2 m | esef· 15 Oct 2026verified |
| Interest expense | 43.4 m | 38.6 m | 32.2 m | esef· 15 Oct 2026verified |
| Pre-tax income | -1.7 m | 32.9 m | 43.7 m | esef· 15 Oct 2026verified |
| Income tax | 3.0 m | 8.7 m | 8.8 m | esef· 15 Oct 2026verified |
| Net income | -4.4 m | 24.2 m | 34.9 m | esef· 15 Oct 2026verified |
| Diluted EPS | -0.02 | 0.10 | 0.15 | esef· 15 Oct 2026verified |
| Dividend per share | — | 0.00 | 0.01 | esef· 15 Oct 2026derived |
Balance sheet · GBP
| Line | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|
| Cash | 26.8 m | 13.9 m | 10.9 m | esef· 15 Oct 2026verified |
| Receivables | 12.0 m | 15.8 m | 17.5 m | esef· 15 Oct 2026verified |
| Inventories | 59.0 m | 56.6 m | 53.5 m | esef· 15 Oct 2026verified |
| Current assets | 104.0 m | 88.7 m | 84.5 m | esef· 15 Oct 2026verified |
| Property, plant & equipment, net | 83.8 m | 75.2 m | 74.3 m | esef· 15 Oct 2026verified |
| Total assets | 1.0 bn | 983.6 m | 940.5 m | esef· 15 Oct 2026verified |
| Short-term debt | 2.6 m | 13.9 m | 10.9 m | esef· 15 Oct 2026verified |
| Long-term debt | 187.4 m | 105.3 m | 67.8 m | esef· 15 Oct 2026verified |
| Current liabilities | 297.9 m | 331.0 m | 331.6 m | esef· 15 Oct 2026verified |
| Total liabilities | 817.5 m | 731.4 m | 652.1 m | esef· 15 Oct 2026verified |
| Equity | 229.0 m | 252.2 m | 288.4 m | esef· 15 Oct 2026verified |
| Shares outstanding at year end | 231.6 m | 230.5 m | 231.1 m | esef· 15 Oct 2026derived |
Cash flow · GBP
| Line | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | 115.9 m | 181.2 m | 166.8 m | esef· 15 Oct 2026verified |
| Capex | 11.6 m | 9.0 m | — | esef· 14 Oct 2025verified |
| Free cash flow | 104.3 m ≈ | 172.2 m ≈ | — | esef· 14 Oct 2025derived |
| Investing cash flow | -19.8 m | -20.3 m | -26.3 m | esef· 15 Oct 2026verified |
| Financing cash flow | -98.6 m | -185.1 m | -140.5 m | esef· 15 Oct 2026verified |
| Dividends paid | — | 0 | 2.3 m | esef· 15 Oct 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 60 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 320.1 m GBP
Key indicators
Coverage and freshness
Score by group
- Quality65
- Returns46
- Balance sheet8
- Valuation91
Estimated value range
unavailable — no valuation assumptions for the reporting currency
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
Assumptions (illustrative, editorial)
- Risk-free rate
- 6.5%
- Equity risk premium
- 6.0%
- Beta (default)
- 1.00
- Cost of equity
- 12.5%
- Terminal growth
- 3.0%
Factor scorecard
Neutral profile · Score 60/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 16.8% | 63 (vs peers) | 17% |
| Net margin · Quality | 3.3% | 34 (vs peers) | 10% |
| FCF conversion · Quality | 452.1% | 100 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 2.3x | 13 (on a fixed band) | 10% |
| Current ratio · Balance sheet | 0.3x | 0 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 9.4x | 83 (vs peers) | 17% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 49.3% | 100 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 0.7% | 10 (on a fixed band) | 10% |
| Payout ratio (FCF) · Returns | 1.5% | 100 (on a fixed band) | 7% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet8/100 · 2/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality65/100 · 3/3 factors with a value
- Returns46/100 · 2/2 factors with a value
- Valuation91/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
DFS FURNITURE PLC (DFS.L). Latest full fiscal year: 2026; data up to 2026-06-28.
Figures computed from the financial statements: revenue 1.1 bn GBP in 2026; YoY growth 2.6%; net margin 3.3%; ROE 12.9%.
The estimated value range is 4.90–7.01 GBP per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 5.81 GBP, the price of 1.39 GBP leaves a potential of 319.6% (value / price − 1) and a margin of safety of 76.2% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 60/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 452.1%
- P/E (TTM): 9.4x
- FCF yield: 49.3%
- Payout ratio (FCF): 1.5%
- The price is below the estimated value range
What contradicts it
- Interest coverage: 2.3x
- Current ratio: 0.3x
- Shareholder yield (distributions): 0.7%
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, EV/EBITDA.
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| DFS.LDfs Furniture PLC | 320.1 m | 9.4 | 12.9% | 3.3% | +2.6% | −12% / +31% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
1- and 3-year price returns: for DFS.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (GBP)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 0.82 Total return -40% · Per year -40% | 1.45 Total return 5% · Per year 5% | 2.19 Total return 59% · Per year 59% |
| 3 years | 0.77 Total return -43% · Per year -17% | 1.53 Total return 13% · Per year 4% | 2.53 Total return 86% · Per year 23% |
| 5 years | 0.72 Total return -46% · Per year -11% | 1.61 Total return 20% · Per year 4% | 2.94 Total return 117% · Per year 17% |
- Exit P/E± 0.38
- Net margin± 0.27
- Annual revenue growth± 0.22
- Annual dilution± 0.02
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
DFS Furniture is a British furniture retailer focused on sofas and upholstered furniture, operating the dfs and Sofology brands. In fiscal 2026 the group continued its profit recovery, with a higher gross margin and lower net debt, against a fragile consumer demand backdrop 1.
SWOT
Strengths
- The made-to-order model, with customer deposits and negative working capital, generates solid cash.
- The multi-brand portfolio of dfs and Sofology provides resilience across different phases of the consumer cycle.
- Cost discipline and consolidated buying lifted the gross margin to target level.
Weaknesses
- Sales depend on discretionary consumer spending, which is sensitive to the cost of living.
- Lease and interest costs remain significant, although they fell over the last year.
- Exposure to sea freight and the dollar makes results dependent on external factors.
Opportunities
- If consumer demand recovers, order volumes could rebound quickly.
- The non-upholstery Home category and showroom expansion could open further growth.
- Digital tools for finishing purchases at home could improve conversion.
Threats
- Geopolitical tensions and inflation may weaken consumer confidence and raise costs.
- Regulatory changes in consumer credit could affect the sale-with-finance model.
- Cyber risks and IT system outages could disrupt sales and operations.
Risks
- Liquidity and banking covenantsmedium
The group depends on bank and capital market access; failing to meet covenants could affect cash flow and going-concern status 1.
- Macroeconomy and demandhigh
Inflation, interest rates and geopolitical tensions could suppress demand and reduce margin, according to management's assessment 1.
- Supply chain resiliencemedium
Supplier disruption, labour shortages or transport delays could raise costs and delay orders 1.
- Cyber security and ITmedium
Cyber attacks or system failures could cause data loss, lost sales and regulatory penalties 1.
- Regulation and compliancelow
Legislative changes on consumer credit and data protection could require adaptation costs and carry sanctions 1.
Investment thesis
What would need to be true (bull case)
- If the gross margin holds at target and debt keeps falling, profitability could keep improving.
- A recovery in consumer demand could quickly amplify volumes, given the existing order base.
- The Home category and showroom expansion could add further growth.
What would break the thesis
- Order intake fell in the second half of the year, and macroeconomic pressure could persist.
- Staff and freight costs are volatile, and offsetting them depends on cost discipline.
- Reliance on consumer credit exposes the group to regulatory change.
What to watch
- Order intake and demand trends in the second half of the fiscal year2027
- Reduction of net bank debt and staying within the 0.5x-1.0x leverage target2027
- Gross margin trend and container freight costs2027
- Capital investment level, which management expects between 27 and 32 million GBPfiscal 2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
DFS Furniture plc is a UK furniture retail group selling sofas and other upholstered products through two main brands, dfs and Sofology, as well as The Sofa Delivery Company. The model is largely made-to-order, so gross sales are recognised on delivery while orders feed revenue with a lag 1. In fiscal 2026 gross sales were 1,420.1 million GBP and reported revenue 1,057.5 million GBP 1. The group is also building its non-upholstery Home proposition, which it views as a growth engine 1.
Activity remains sensitive to the consumer cycle, container freight costs and the USD/GBP exchange rate, factors the group tries to mitigate through hedging and consolidated buying teams 1.
Segments
dfs
The dfs brand generated gross sales of 1,113.6 million GBP in fiscal 2026, up 2.0% year on year. dfs order intake fell 2.0% over the year, while the non-upholstery Home segment grew 1.
Sofology
Sofology generated gross sales of 305.7 million GBP in fiscal 2026, up 2.9%, and outperformed the market, supported by a more affluent customer base and interest-free credit extension 1.
Market context
The UK upholstered furniture market was volatile in fiscal 2026. Demand was stronger among higher-income households, while customers hit by cost-of-living pressures deferred large purchases. Group order intake slowed in the second half amid geopolitical tensions and weaker consumer confidence 1.
The company says a market recovery could support higher returns, but this depends on the macroeconomic outlook, and management describes a likely challenging near-term trading environment 1.
Trends
- Container freight costsmixed
Average container rates fell towards longer-term historical levels, a margin benefit, but sensitivity is high: each movement in freight rates could change the annual freight charge by a material amount 1.
- USD/GBP exchange ratemixed
A more favourable average rate supported gross profit, yet dollar exposure remains real, and the group hedges part of its USD requirement months in advance 1.
- Pressure on consumer demandheadwind
Lower-income customers have become more cautious and big-ticket purchases are deferred during uncertainty. If pressure persists, volumes could remain under strain 1.
- Employment and wage costsheadwind
Higher National Insurance contributions and National Living Wage adjustments raised operating costs. The company says its cost discipline could partly offset these pressures 1.
Competitive position
DFS operates in a fragmented UK upholstered furniture market with competitors selling online and through showrooms. The group's brands differentiate through exclusive partnerships, interest-free credit and digital shopping experiences 1. The source document does not name specific direct competitors.
- UK furniture retail competitors
The source does not name specific competitors; no comparison with these players is supported by the document reviewed.
News & filings
In the press
No news in our archive over the last 180 days.
Annual reports (ESEF)
- Annual report 202615 Oct 2026
- Annual report 202514 Oct 2025
Sources
- [1] Annual report, fiscal year ended 2026-06-28 (ESEF) · SEC / DFS Furniture plc · 28 Jun 2026
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.