Homewares retailer Dunelm prelim FY26 sales slightly beat on digital and omnichannel growth
Homewares retailer Dunelm prelim FY26 sales slightly beat on digital and omnichannel growth
Overview
UK homewares retailer's preliminary FY26 sales grew 3.1%, slightly beating analyst expectations
Pretax profit for FY26 was flat yr/yr, slightly beating analyst expectations
Diluted EPS for FY26 remained flat yr/yr
Outlook
Company reports significantly softer trading in first six weeks of FY27 due to hot weather
Dunelm says recent cooler weather has led to better trading and strong online conversion
Company launching new three-year strategic plan and refers to separate announcement for FY27 guidance
Result Drivers
DIGITAL AND OMNICHANNEL GROWTH - Increased digital participation and investment in omnichannel capabilities, including the launch of the Dunelm App, contributed to sales growth
CATEGORY PERFORMANCE - Growth in Made-to-Measure, lighting, storage, and strong seasonal performance in Summer Living ranges supported overall sales
COST PRESSURES AND PRODUCTIVITY GAINS - Higher operating costs from logistics, inflation and investment were partly offset by productivity improvements and insurance receipts
Company press release: ID:nRSH7582Ta
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Sales | Slight Beat* | GBP 1.83 bln | GBP 1.82 bln (14 Analysts) |
FY Gross Margin |
| 52.50% |
|
FY Pretax Profit | Slight Beat* | GBP 211 mln | GBP 209.73 mln (13 Analysts) |
FY Sales Growth |
| 3.10% |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the home furnishings retailers peer group is "buy"
Wall Street's median 12-month price target for Dunelm Group PLC is GBp1,080.00, about 21.8% above its September 7 closing price of GBp886.50
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago
Reuters Recommended Reads
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Sept 7 - UK retailers seek to create 100,000 jobs for young unemployed over next 3 years
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)