REG - Dunelm Group plc - First quarter trading statement

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RNS Number : 4692E  Dunelm Group plc  23 October 2025

 

23 October 2025

Dunelm Group plc

 

First quarter trading update

 

Strong performance; continued delivery of sustainable, profitable growth

 

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

 

                           Q1 FY26  YoY
 Total sales               £428m    +6.2%
 Digital % total sales(1)  40%      +3ppts

( )

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

 

Highlights

·    Strong sales growth, up 6.2% year-on-year to £428m; digital
participation up 3ppts to 40%

·    Gross margin up 80bps year-on-year, driven by FX tailwinds and
continued operational grip

·    Good strategic progress, with the Dunelm app successfully launched
and our 'Home of Colour' brand campaign now live

·    Full year outlook remains in line with the Board's expectations

 

Strong performance driven by broad and relevant offer

 

We are pleased to report a strong trading performance for the first quarter,
with total sales up 6.2%. Our growth was driven by both higher volumes and
increased average item values from product and category mix, as customers
continued to respond well to our value proposition at all price points.

 

We delivered broad-based growth across our categories, reflecting the
continued relevance of our wide-ranging offer. As customers prepared their
homes for the colder, darker months, we saw strong demand for warming
textiles, with rugs and throws trading particularly well. As the Home of
Homes, our extensive product range allows us to meet changing customer needs
across the seasons.

 

Our relevance is amplified through curated campaigns, and this quarter we
successfully delivered our biggest ever student offer. Providing everyday
essentials across our ranges at compelling prices helped drive c.40%
year-on-year growth in the campaign overall, broadening Dunelm's appeal to new
and younger audiences.

 

We delivered another strong gross margin, up 80bps year-on-year, primarily
driven by the FX tailwind that we began to see at the end of the last
financial year, whilst also benefitting from our usual operational grip.

 

Strategic and operational update

 

We have started the new financial year with good progress against our
strategic priorities, as we continue to invest in the business.

 

We reached an important milestone in the development of our digital
proposition, with the Dunelm app now available to customers via the Apple App
Store, marking the beginning of a new phase of digital development. Over the
course of the next financial year and beyond, we will further develop the
app's functionality to drive more inspirational and cross-channel shopping
experiences for our customers.

 

We also launched our new 'Home of Colour' brand campaign in the period,
showcasing the depth of our specialist offer, and giving customers the
confidence to embrace cross-category coordination across their home, whatever
their style preference.

 

Summary and outlook

 

We are pleased with our performance in the first quarter, in an ongoing
uncertain consumer environment. We delivered broad-based sales growth across
our categories and channels, and a strong gross margin.

 

We continue to make good progress against our strategic priorities and invest
for future growth. The timing of investments, alongside the inflationary
impacts we currently face, is such that we currently expect profits to be more
heavily weighted towards the second half than last year; FY26 PBT remains in
line with the Board's expectations.

 

We remain confident in our ability to deliver further sustainable, profitable
growth as we move towards our next milestone of 10% market share in the medium
term.

 

 

Clo Moriarty, Chief Executive Officer, commented:

 

"After a few weeks immersing myself in the business, I'm delighted to see up
close the qualities that attracted me to Dunelm: an inclusive culture,
committed colleagues, and a genuine passion for the role we play in our
customers' lives.

 

"It's a great time to be joining Dunelm. The business has delivered another
strong performance in the first quarter, which reflects both the appeal of our
customer offer and the strength of our business model. Building on this, I see
real energy across the business - from the launch of our new app, to a vibrant
brand campaign celebrating colour choices across our ranges - driving
improvements to our proposition.

 

"These initiatives, and many more, show the potential we have to build even
deeper connections with a broad and diverse customer base. With the reach of
our national store footprint, a growing digital presence, and a growth mindset
that brings together people and technology, I'm genuinely excited about what's
ahead."

 

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 release its second quarter trading update on 15 January 2026.

 

Quarterly analysis:

 

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

 

                        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 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(2).

 

(2) Ordinary dividends plus special distributions

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