REG - Dunelm Group plc - Fourth quarter and full year trading update

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RNS Number : 3866R  Dunelm Group plc  17 July 2025

 
 

 

 

 

17 July 2025

Dunelm Group plc

 

Q4 and full year trading update

 

Good performance in Q4, full-year PBT in line with consensus

 

Dunelm Group plc ("Dunelm" or "the Group"), the UK's leading homewares
retailer, updates on trading for the 13-week period ended 28 June 2025 and for
the full year.

 

                           Q4              Full year
                           FY25     YoY    FY25      YoY
 Total sales               £415m   +4.0%   £1,771m   +3.8%
 Digital % total sales(1)  42%     +2ppts  40%       +3ppts

( )

(1) Digital includes home delivery, Click & Collect orders, and
tablet-based sales in store

 

 

Highlights

·    Q4 sales up 4.0%, with digital participation at 42%, up 2ppts
year-on-year

·    Full-year sales of £1,771m up 3.8%

·    Full-year gross margin expected to be up 60bps year-on-year,
reflecting our strong commercial and operational grip

·    FY25 PBT expected to be in line with consensus(2), reflecting a
broadly stable PBT margin year-on-year

·    Good progress against strategic priorities; invested in four new
superstore openings in the final quarter (including one relocation) and
completed the acquisition of Designers Guild brand and archive

·    Clo Moriarty appointed as CEO, with effect from 1 October 2025

(2) Company compiled consensus average of analysts' expectations for FY25 PBT
is £210m, with a range of £207m to £215m

 

Continued sales growth and a good Summer Sale

 

Q4 FY25

 

We are pleased to report total sales for the final quarter of £415m, up 4.0%
against a good Q4 last year. The period included our Summer Sale, during which
both full-priced and discounted products performed well, as customers enjoyed
exceptional value alongside exciting new products across the breadth of our
ranges.

 

Across our categories, furniture has continued to perform particularly
strongly. Our outdoor furniture and decorative outdoor accessories sold very
well, especially in the warmer periods at the start and end of the quarter,
when there was less demand for some of our warmer weather textiles products.

 

FY25 full year

 

Total sales of £1,771m grew by 3.8% on the previous year, with digital sales
accounting for 40% of the total, up 3ppts year-on-year. Whilst we are yet to
see sustained recovery in consumer confidence, our customers continue to
respond to the relevance of our product offer and our fast and convenient
channels.

 

Gross margin and PBT

 

Gross margin is now expected to be 60bps higher year-on-year, ahead of our
guided range. In the final quarter, the strong performance of our full-price
ranges, alongside the limited discounting and strong sell-through of our
seasonal ranges, strengthened our gross margin. Throughout the year, pricing
has remained broadly stable. We have also maintained our grip on input costs
across our supply chain, carefully managing freight and FX, with the latter a
small tailwind only towards the end of year.

 

We expect to deliver a broadly stable PBT margin for the full year, as
anticipated and in line with our medium-term guidance, despite another year of
inflationary cost increases and continued investment in the business. Profit
before tax is therefore expected to be in line with consensus(3) for FY25.

 

(3) Company compiled consensus average of analysts' expectations for FY25 PBT
is £210m, with a range of £207m to £215m

 

Strategic and operational update

 

We made further progress against our strategic priorities, with an ongoing
focus on our long-term ambitions.

 

We invested in four new stores in the quarter: one small superstore in
Trowbridge and large superstores in Manchester and Southend; we also relocated
our Peterborough store to a larger, better located site. This now brings the
total number of new superstores opened in FY25 to six, not including our first
inner London store at Westfield, and demonstrates the increasing variety of
formats and sizes we now have within our store estate.

 

We also acquired the Designers Guild brand and design archive. We are excited
about the opportunities this provides to participate in the growth of an
iconic brand and support its continued development.

 

Our strong digital performance in the final quarter reflects the aggregate
impact of improvements made throughout the year to our customers' digital
experience. The introduction of AI-powered search, recommendations and browse
is driving increasingly personalised experiences, alongside a more convenient
shopping experience through the expansion and optimisation of our Click &
Collect proposition.

 

Summary and outlook

 

We are pleased with our overall performance in Q4 and the full year. FY25 has
been a year in which we have delivered high quality sales growth and a broadly
stable PBT margin. We have again made good progress against each of our three
strategic priorities: to elevate our product offer; to connect with more
customers; and to harness our operational capabilities.

 

Whilst we are yet to see signs of a consumer recovery, we continue to in
invest in the business and make progress against our strategy, as we are
confident in our plans and ability to deliver further market share gains.

 

We are focused on staying relevant for our customers; we offer them
outstanding value, quality and choice for their homes. Our performance is
underpinned by our resilient business model, reinforcing our confidence in our
plans to unlock our full potential as the Home of Homes.

 

Nick Wilkinson, Chief Executive Officer, commented:

 

"We've had a good final quarter with continued growth and further strategic
progress. Customers responded well to offers across our categories in our
Summer Sale, and we saw strong demand for our Summer Living ranges,
particularly as customers focused on their outdoor spaces during the warmer
weather.

 

"We opened four new superstores in the final quarter alone, and our
acquisition of the Designers Guild brand and archive presents an exciting
opportunity to introduce new, iconic designs to our customers. These strategic
developments conclude a year marked by a number of 'firsts', including
international expansion into Ireland; deploying AI to improve our website
experience; and opening our first inner London store at Westfield White City.

 

"Amidst muted consumer confidence, we are not standing still waiting for a
recovery. We are instead focused on delivering relevance to our customers, to
help build greater trust in the quality, value and breadth of our offer,
harnessing our unique strengths as a multi-category specialist. As we progress
our ambitions to gain further market share, we remain confident in our ability
to unlock our full potential as the Home of Homes."

 

For further information please contact:

 Dunelm Group plc                                   investorrelations@dunelm.com
 Nick Wilkinson, Chief Executive Officer

 Karen Witts, Chief Financial Officer
 MHP                                                07595 461 231
 Oliver Hughes / Rachel Farrington / Charles Hirst  dunelm@mhpgroup.com

Next scheduled event:

Dunelm will make its preliminary results announcement on 9 September
2025. There will be an in-person presentation for analysts and institutional
investors at 9.30am, hosted at Peel Hunt LLP, 100 Liverpool
Street, London, EC2M 2AT, as well as a webcast and conference call with a
facility for Q&A. For details, please contact hugo.harris@mhpgroup.com. A
copy of the presentation will be made available
at https://corporate.dunelm.com
(https://protect.checkpoint.com/v2/r06/___https:/corporate.dunelm.com/___.ZXV3MjpuZXh0MTU6YzpvOjcyZmJmMjFkNmFkOTgyYWVmYjBlOTRmZGUxYTFiZGZhOjc6ZDA3ODo2YTFkMWI4ZThmNmQ0ZmFjN2MzM2MwOTUwZjY5OWUxM2ExNGZmZmNiMTFmZGYxODczZjlmNTNhNTczNDA0OTJiOnA6RjpU)
 

 

 

Quarterly analysis:

                        52 weeks to 28 June 2025
                        Q1        Q2        H1        Q3        Q4        H2        FY
 Total sales            £403.2m   £490.5m   £893.7m   £461.9m   £415.4m   £877.3m   £1,771.0m
 Total sales growth     +3.5%     +1.6%     +2.4%     +6.3%     +4.0%     +5.2%     +3.8%
 Digital % total sales  37%       40%       39%       41%       42%       42%       40%

 

                        52 weeks to 29 June 2024
                        Q1        Q2        H1        Q3        Q4        H2        FY
 Total sales            £389.6m   £482.9m   £872.5m   £434.5m   £399.5m   £834.0m   £1,706.5m
 Total sales growth     +9.2%     +1.0%     +4.5%     +2.6%     +5.0%     +3.8%     +4.1%
 Digital % total sales  35%       37%       36%       37%       40%       39%       37%

 

Notes to Editors

Dunelm is the UK's market leader in homewares with a purpose 'to help
create the joy of truly feeling at home, now and for generations to come'. Its
specialist customer proposition offers value, quality, choice and style across
an extensive range of c.95,000 products, spanning multiple homewares and
furniture categories and including services such as Made to Measure window
treatments.

 

The business was founded in 1979 by the Adderley family, beginning as a
curtains stall on Leicester market before expanding its store footprint. The
business has grown to 202 stores across the UK and Ireland and has developed a
successful online offer through dunelm.com which includes home delivery and
Click & Collect options. 159 UK stores now include Pausa coffee shops,
where customers can enjoy a range of hot and cold food and drinks.

 

From its textiles heritage in areas such as bedding, curtains, cushions,
quilts and pillows, Dunelm has built a comprehensive offer as The Home of
Homes including furniture, kitchenware, dining, lighting, outdoor, decoration
and DIY. The business predominantly sells specialist own-brand products
sourced from long-term, committed suppliers.

 

Dunelm is headquartered in Leicester and employs c.12,000 colleagues. It has
been listed on the London Stock Exchange since October 2006 (DNLM.L) and
the business has returned more than £1.5bn in distributions to shareholders
since IPO(4).

 

(4) Ordinary dividends plus special distributions

 

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