UK's Dunelm H1 profit falls on softer Q2 trading

Dunelm

10/02/2026 07:09

Overview

UK homewares retailer's H1 sales grew 3.6% to £926 mln, despite challenging market

Profit before tax fell 7.5% to £114 mln, reflecting softer Q2 trading

Gross margin improved to 53.4%, driven by FX gains

Outlook

Dunelm expects FY26 PBT to align with consensus expectations of £214 mln

Company plans full app launch in spring to boost sales

Dunelm sees stronger sales growth in Q3, more in line with H1

Result Drivers

FX GAINS - Gross margin increased to 53.4% due to favorable foreign exchange conditions

SOFTER Q2 TRADING - Profit before tax declined due to softer Q2 trading and timing of certain costs

FURNITURE SALES - Softer furniture sales impacted by market factors and availability issues

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
H1 Gross Margin
53.40%
H1 Dividend
GBP 0.17
H1 Pretax Profit
GBP 114 mln
H1 Sales Growth
3.60%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 2 "hold" and 1 "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 GBp1,200.00, about 28.1% above its February 9 closing price of GBp937.00

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nRSJ3212Sa

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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.)