DFS has reiterated its full-year profit guidance despite the furniture retailer warning of uncertainty around the upcoming Budget.

In a trading statement for the 19 weeks to 9 November, DFS said its financial year has "begun positively", with order intake growth across this period against strong comparatives.

The company said it was also pleased with progress in its self-help cost initiatives which are driving improvements in gross margins and helping mitigate the impact of inflation.

As a result, DFS said it expects to deliver strong year-on-year profit growth in the first half.

Chief executive at DFS, Tim Stacey, said: "By continuing to execute our strategy we have made a strong start to the year. Despite the upholstery market remaining subdued, we have grown order intake across both our retail brands, ahead of the market, and progressed our gross margin and cost base initiatives leaving us in a good position to deliver strong first half year on year profit growth.

"Our customer proposition is in great shape and our medium-term outlook remains positive."

However, the retailer said it was mindful of the broader macroeconomic environment and uncertainty created by the upcoming Autumn Budget.

Despite this, DFS stated that it remains comfortable with the range of consensus profit expectations, which are set to reach £40.6m, with a range of £37.7m and £43m.

Looking further ahead, DFS added it remains confident in its prospects and it will continue to focus on executing its strategy and delivering value for all its stakeholders.

Head of markets at AJ Bell, Dan Coatsworth, said that with circling economic uncertainty and a weakening job market, DFS’s results make come as a surprise to some.

He concluded: "DFS is clearly doing something right to show resilience in a tough market.

"The big unknown is whether that positive momentum is derailed by the contents of the Budget. It’s possible that Chancellor Rachel Reeves will dish up some unpleasant news that weighs on the public in the near-term and causes people to seal their wallets shut. Buying a sofa is a discretionary purchase and it’s easy to throw a rug over a tatty three-piece to make it last longer than go and buy a new one.

"DFS is at the mercy of the Chancellor and might need to have a lie down on one of its products if family finances come under renewed pressure."

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