REG - Dunelm Group plc - Second quarter and first half trading update

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RNS Number : 9603O  Dunelm Group plc  15 January 2026

 

 

 

15 January 2026

Dunelm Group plc

 

Second quarter and first half trading update

 

Solid first half performance in a challenging environment

 

 

Dunelm Group plc ("Dunelm" or "the Group"), the UK's leading homewares
retailer, updates on trading for the 13-week period ended 27 December 2025 and
for the first half.

 

                           Q2       Q2 YoY   H1      H1 YoY
 Total sales               £498m   +1.6%     £926m   +3.6%
 Digital % total sales(1)  42%     +2ppts    41%     +2ppts

( )

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

 

Performance

·    Sales growth of 1.6% in Q2 to £498m, with digital participation up
2ppts to 42%

·    Total sales for the first half up 3.6% to £926m

·    Gross margin up 60bps year-on-year for H1, primarily driven by FX
tailwinds

·    H1 PBT expected to be approximately £112m - £114m

·    FY26 PBT now expected to be at the lower end of consensus
expectations2

(2) Company compiled consensus average of analysts' expectations for FY26 PBT
is £222m, with a range of £214m to £227m

 

Sales and gross margin

 

We are reporting a solid performance for the first half, with total sales of
£926m up +3.6%. Following a strong Q1, trading was more challenging in the
second quarter, particularly around Black Friday and continuing into December,
highlighting the ongoing challenging macroeconomic environment.

As in recent years, we also continued to be disciplined in our promotions
during this period, but this year we saw an especially high level of
competitive activity in both digital marketing and discounting. As a result,
Q2 sales were softer than anticipated at +1.6% year-on-year.

Our growth in the second quarter continued to be driven by our core
categories, notably bedding, towels and lighting, and Made-to-Measure again
grew strongly. However, we saw softer trading in furniture, driven in part by
availability challenges, against which recovery plans are in place. Since the
end of the quarter we have seen customers respond well to our offers in the
Winter Sale, with overall growth higher than we saw in Q2.

Gross margin remained strong, increasing by 60bps year-on-year in the first
half, which continued to be primarily driven by FX tailwinds.

Summary and outlook

Overall we are reporting a solid performance for the first half, with strong
sales in Q1 followed by a softer Q2, reflecting consumer behaviour.

At the same time, we have continued to improve our customer proposition,
including opening our second inner London store in Wandsworth in Q2 and
reopening our Yeovil store following a fire last year, with plans to open up
to two further Superstores in the second half. Our new Dunelm App is also now
live on both Apple and Android platforms, with a full customer launch planned
for February.

We previously guided that profits would be more heavily weighted towards the
second half than the prior year; H1 PBT has also been impacted by the second
quarter trading performance. As such, we now expect PBT for the first half to
be approximately £112m - £114m. We expect PBT for the full-year to be at the
lower end of consensus expectations(3).

(3) Company compiled consensus average of analysts' expectations for FY26 PBT
is £222m, with a range of £214m to £227m

 

Clo Moriarty, Chief Executive Officer, commented:

 

"We delivered a solid first half, and I'm really proud of all our colleagues
for their efforts over this busy period. The performance reflected a strong
first quarter followed by a more challenging close to the half.

 

"Whilst the UK retail environment remains variable, we have acted on some
clear lessons from the first half, including targeted steps to improve
availability, ensuring customers can access our fantastic ranges
seamlessly, however they are shopping with us.

 

"I see multiple opportunities to extend Dunelm's market-leading position -
there is much more in the tank. As such, we are now moving forwards with
energy and discipline, actively building new plans whilst executing existing
ones to ensure we are the first choice for all home lovers."

 

For further information please contact:

 

 Dunelm Group plc                                   investorrelations@dunelm.com
 Clo Moriarty, Chief Executive Officer

 Karen Witts, Chief Financial Officer

 Media enquiries: MHP                               07770 753 544
 Oliver Hughes / Rachel Farrington / Charles Hirst  dunelm@mhpgroup.com (mailto:dunelm@mhpgroup.com)

 

Next scheduled event:

Dunelm will make its interim results announcement on 10 February
2026. There will be an in-person presentation for analysts and institutional
investors in the morning 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. Please register for the webcast via
https://brrmedia.news/DNLM_IR_26
(https://protect.checkpoint.com/v2/r06/___https:/url.uk.m.mimecastprotect.com/xdzm4/H1aV2m3ElStx*~*k7MtwJZk?itrfns=gwwrjinf.sjBx___.ZXV3MjpuZXh0MTU6YzpvOjRjODdiYjhjOTZhMmExZTdjMzcwNjA4OGFkNWY2YjU0Ojc6YTNiNDo0YzE4Mzk1MjFiM2NhMjc5MDQzZjkzMmJlZjIyYzUyY2Y5MGU2NTc2NzA4MGY4M2QxYmJkYjYzNWI2ODA4NzE5OnA6RjpU)
. For conference call details please contact dunelm@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/___.ZXV3MjpuZXh0MTU6YzpvOjRjODdiYjhjOTZhMmExZTdjMzcwNjA4OGFkNWY2YjU0Ojc6NDA2YTpmNzgwNzdiMzhiZTM3MGIzNWU0NzBmYjY2YjhkYWI2YzM2NzdmYzM5MzQ1Y2VkMzNmODYzYThkMTM5OTI5Yjg2OnA6RjpU)
.

 

Quarterly analysis:

 

                        52 weeks to 27 June 2026
                        Q1        Q2        H1        Q3    Q4    H2    FY
 Total sales            £428.1m   £498.2m   £926.3m
 Total sales growth     +6.2%     +1.6%     +3.6%
 Digital % total sales  40%       42%       41%

 

                        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%

 

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 more than 100,000 SKUs, 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 203 stores across the UK and Ireland and has developed a
successful online offer through dunelm.com which includes home delivery and
Click & Collect options. 160 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.12,500 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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