DFS Group has reported that its group order intake over the first 12 weeks of FY27 dropped by 2.5% year-on-year, reflecting the weak consumer backdrop.

In its AGM trading update for the 19 weeks to 8 November, the upholstered furniture retailer said that in the subsequent seven weeks, upholstery market demand softened further, as a result of continued pressure on household budgets and reduced consumer confidence.

While the group has not been immune to the climate, the group’s core retail brands, DFS and Sofology, have continued to outperform the wider sector, according to proprietary banking data.

The firm said it is investing to support customers in the “challenging environment”, with target commercial initiatives to drive conversion as it enters its key trading period of Black Friday and its winter sale.

Against this backdrop of fluctuating footfall, fragile consumer confidence, and the early stage of its financial year, full-year profit expectations “naturally carry a wider range of potential outcomes”.

Following the update, shares in DFS Group fell by 3.73%.

DFS Group’s chief executive, Tim Stacey, said: “While the consumer environment has remained challenging through the autumn, DFS is well placed within it as the clear market leader with unmatched scale, brand resonance and operational strength.

"As we enter the important upcoming trading periods, we are focused on what we can control; taking proactive commercial actions to drive cash margins while maintaining tight control of our costs. Our proven model and strategic progress give us confidence in the group’s resilience through the cycle and our ability to deliver long-term value for all shareholders."

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