DFS FurnitureLSE:DFS +3.97%66 Gross Margin % is 57.75% as of Dec. 2025, which is 2% above its 10-year median of 56.39. GuruFocus rates LSE:DFS with a GF Score™ of 66/100 and a GF Value™ of £1.33 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,113 Retail - Cyclical companies, DFS Furniture ranks better than 82.75% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
DFS Furniture had a gross margin of 57.75% for the quarter that ended in Dec. 2025 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
DFS Furniture Gross Margin % Related Terms
DFS Furniture Gross Margin % Historical Data
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The historical data trend for DFS Furniture's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LSE:DFS vs CASY, WSM, DKS: Gross Margin % Comparison
For the Specialty Retail subindustry, DFS Furniture's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
DFS Furniture Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, DFS Furniture's Gross Margin % distribution charts can be found below:
* The bar in red indicates where DFS Furniture's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
DFS Furniture (LSE:DFS) has a Gross Margin % of 57.75% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on DFS Furniture and its competitors. This is near median its historical median of 56.39. Over the past decade, DFS Furniture's Gross Margin % has ranged from 17.76 to 58.80. According to the industry distribution chart, DFS Furniture ranks #192 out of 1113 companies in the Retail - Cyclical industry, placing it in the top 17.3%.
Is DFS Furniture's Gross Margin % too high?
DFS Furniture's current Gross Margin % of 57.75% is near median its 10-year median of 56.39. Over the past 10 years, this metric has ranged from a low of 17.76 to a high of 58.80. The Retail - Cyclical industry median Gross Margin % is 36.26. DFS Furniture's value of 57.75% is 59.3% above this industry median. Based on the distribution chart, DFS Furniture ranks #192 out of 1113 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, DFS Furniture has a GF Score™ of 66/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does DFS Furniture's Gross Margin % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, DFS Furniture ranks #192 out of 1113 companies for Gross Margin %. This places DFS Furniture in the top 17% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 36.26. DFS Furniture's value of 57.75% is 59.3% above this benchmark. Historically, DFS Furniture's own Gross Margin % has ranged from 17.76 to 58.80 over the past decade. While the company's 10-year median is 56.39 vs. the industry median of 36.26, DFS Furniture has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.26, based on 1,113 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. DFS Furniture's current Gross Margin % of 57.75% is 59.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on DFS Furniture and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DFS Furniture's current Gross Margin % is 57.75%, which is near median its own 10-year median of 56.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DFS Furniture stock overvalued right now?
Based on GuruFocus' analysis, DFS Furniture (LSE:DFS) is currently considered Fairly Valued. The stock's GF Value™ is £1.33, compared to a current price of £1.44 — trading 8.3% above its estimated fair value. The current Gross Margin % is 57.75%, which is near median its 10-year median of 56.39 and 59.3% above the Retail - Cyclical industry median of 36.26. DFS Furniture's overall GF Score™ is 66/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For DFS Furniture (LSE:DFS), the current Gross Margin % is 57.75% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is DFS Furniture (LSE:DFS) Overvalued in 2026?
Based on GuruFocus' analysis, DFS Furniture stock appears to be overvalued.
The current stock price of £1.44 is trading 8.3% above its estimated GF Value™ of £1.33.
GuruFocus considers DFS Furniture to be Fairly Valued.
Key valuation signals for LSE:DFS:
Gross Margin %: 57.75% (near median its 10-year median of 56.39)
GF Value™: £1.33 vs. price of £1.44 (8.3% above fair value)
Industry Position: 59.3% above the Retail - Cyclical median (#192 of 1113)
No single metric tells the full story. See the LSE:DFS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
DFS Furniture PLC is a retailer and manufacturer of upholstered furniture in the United Kingdom and the Republic of Ireland. It designs, manufactures, sells, delivers, and installs products, including sofas, armchairs, reclining chairs, and footstools, through its brand portfolio, which comprises DFS, Sofology, and Dwell. The company operates a network of physical showrooms and online platforms, offering an integrated shopping experience. The company's prominent business segments include DFS and Sofology, out of which DFS generates the maximum revenue through the retailing of upholstered furniture and related products through branded stores and website. The company operates under an omnichannel retail plan, balancing physical presence and e-commerce to meet customer needs.
66GF Score
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