Dunelm Preliminary Results Show 3.1% Sales Increase

• Solid FY26 performance; update on new strategic plans to accelerate growth 

Dunelm Group plc ("Dunelm" or "the Group"), the UK's leading homewares retailer, today [8th September] announces its Preliminary Results for the 52 weeks to 27 June 2026. 

Resilient trading in a challenging year

• Sales of £1,825m up 3.1% on FY25; digital participation up 2ppts to 42%
  
  
• Gross margin up 10bps to 52.5%
  
  
• Profit before tax £211m, in line with the prior year
  
  
• Strong cash generation: free cash flow of £155m (FY25: £127m) representing 69% of operating profit (FY25: 57%)
  
  
• Opened two new stores during the year; a smaller store in Wandsworth, and a superstore in Kingston-upon-Thames. We also reopened our Yeovil store following its closure due to a serious fire
  
  
• Dunelm App launched, with beta AI-powered shopping assistant added in July
  
  
• Completed a comprehensive assessment of the business and the opportunities to accelerate growth in its next phase
  
  
• Final ordinary dividend per share of 28.5 pence (FY25: 28.0 pence), bringing total ordinary dividend per share to 45.5 pence (FY25: 44.5 pence). Total dividends declared of 70.5 pence per share (FY25: 79.5 pence), including special dividend paid in April

Outlook                                  

• We remain very confident in our fundamental strengths and growth opportunity
  
  
• As a result of the extended period of unusually hot weather, however, we saw significantly
  softer trading in first six weeks of FY27
  
  
• Strong online conversion and increasing store footfall give confidence in our current proposition, and we have seen better trading following cooler weather
  
  
• In a separate announcement today, we update on our strategic plans, including medium term targets and FY27 guidance

Learn more about Dunelm's new strategy here

Clo Moriarty, Chief Executive Officer, commented:

"We delivered a solid performance for the year, growing sales, maintaining profits and generating strong cash returns for shareholders. My sincere thanks go to our loyal customers, our valued suppliers for their ongoing partnership and of course our tremendous colleagues who make all of this happen.

"Over the last year, we have taken a deep and honest look at our business and the opportunities ahead to better serve our customers and drive the Group's performance. This work has given us confidence that the opportunity in front of Dunelm is larger than we previously understood, but also that we need to evolve. The strength of our business and balance sheet means we are well placed to invest for the future and accelerate our growth trajectory.

"To capture our opportunity, we are launching 'Winning Hearts & Homes', a customer-led, self-funded plan to strengthen our market leadership position. By building on the proven strengths that have made Dunelm so successful and by developing the capabilities that will support the next phase of growth, we believe we can create a bigger, better and bolder Dunelm for all our stakeholders."

¹ Year-on-year sales for all stores trading in comparable periods in the reported year and the preceding year. Includes completed in-store transactions, sales transacted through in-store tablets and Click & Collect orders

² Includes home delivery, Click & Collect and tablet-based sales in store

³ Other operating income less operating costs. Other income includes rental income and insurance income

⁴ Net cash generated from operating activities less capex (net of disposals), net interest paid (including leases) and loan transaction costs, and repayment of principal element of lease liabilities. A reconciliation of operating profit to free cash flow is included in the CFO review

⁵ Cash and cash equivalents less total borrowings. Excludes IFRS 16 lease liabilities

Source : Dunelm plc

Image : Dunelm plc

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