REG - Dunelm Group plc - Third quarter trading update

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RNS Number : 6575A  Dunelm Group plc  16 April 2026

 

 

 

16 April 2026

Dunelm Group plc

 

Third quarter trading update

 

Sales growth and continued strong gross margin despite uncertain environment

 

Dunelm Group plc ("Dunelm" or "the Group"), the UK's leading homewares
retailer, updates on trading for the 13-week period ended 28 March 2026.

 

                           Q3              Year-to-date
                           FY26    YoY     FY26      YoY
 Total sales               £472m   +2.1%   £1,398m   +3.1%
 Digital % total sales(1)  43%     +2ppts  42%       +2ppts

( )

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

 

Performance

 * Sales growth of 2.1% to £472m in Q3, with digital participation up 2ppts to
43%

 * Total sales up 3.1% to £1,398m in the year-to-date

 * Gross margin increased by 30bps year-on-year for Q3

 * FY26 PBT currently expected to be towards the lower end of consensus
expectations(2)

(2) Company compiled consensus average of analysts' expectations for FY26 PBT
is £213m, with a range of £210m to £217m

 

Sales and gross margin

 

Total sales for the third quarter increased by 2.1% year-on-year to £472m. As
previously reported, the third quarter started well, with growth in line with
our first half performance, following a good Winter Sale and a positive
response to new Spring ranges. The universal appeal of our offer continued to
resonate with customers, however more recently, and particularly in March, we
experienced a period of broad-based softening.

Gross margin increased by 30bps year-on-year in the quarter. Whilst we
continue to benefit from the FX tailwind seen in the first half, we also saw
customers seeking value, buying into more discounted products compared to full
price lines.

 

Summary and outlook

In Q3 we delivered further sales and gross margin growth in an uncertain
consumer environment. The cost plans set out at our Interim Results for H2
remain on track. Through our ongoing delivery of productivities and a
disciplined approach to investments, we are navigating the impact of
instability in the Middle East, which is expected to only have a small direct
cost impact in this financial year.

We have a strong calendar of events planned for Q4, and confidence in our
ability to continue to deliver a compelling proposition to our customers.
However, global events have resulted in a more uncertain external environment,
and we are not assuming any immediate improvement to consumer confidence. We
therefore currently expect PBT for FY26 to be towards the lower end of
consensus expectations 3.

We remain very confident in our ability to control the controllables, and in
our long-term growth prospects; we have a strong set of assets, all of which
present further opportunities. The full launch of our mobile app in Q3 gives
us a new digital platform, with the opportunity to drive greater customer
engagement, loyalty and enhanced experiences. Total downloads are now above
300k and we are encouraged by early performance on conversion and spend per
transaction. We are also capitalising on the opportunity we see to accelerate
growth through our store footprint, with a significantly stronger pipeline of
new openings expected in our next financial year, including our
Kingston-upon-Thames store which we are planning to open in the summer.

(3) Company compiled consensus average of analysts expectations for FY26 PBT
is £213m, with a range of £210m to £217m

 

Clo Moriarty, Chief Executive Officer, commented:

 

"We saw further sales growth in Q3, against an uncertain backdrop for both
customers and businesses.

"Although the external environment is not helpful in the short term, we
continue to focus on the areas within our control - strengthening our
proposition while operating efficiently and effectively. Alongside this, we
are making good progress building our long‑term growth plans with some
exciting developments beginning to emerge, including a much stronger store
opening pipeline and some encouraging early results from our recently launched
app.

"Our final quarter provides multiple opportunities for Dunelm to stay front of
mind for customers, including our popular Summer Sale. We remain confident
that our comprehensive offer will continue to resonate with homelovers."

 

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

 

Next scheduled event:

Dunelm will make its fourth quarter trading update on 16 July 2026.

 

Quarterly analysis:

 

                        52 weeks to 27 June 2026
                        Q1        Q2        H1        Q3        Q4    H2    FY
 Total sales            £428.1m   £498.2m   £926.3m   £471.6m
 Total sales growth     +6.2%     +1.6%     +3.6%     +2.1%
 Digital % total sales  40%       42%       41%       43%

 

                        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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