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Dunelm’s pre-tax profit is expected at the lower end of £214m-£227m due to stiff competition and tough festive trading conditions, with Q2 sales growth slowing to 1.6%.
- Dunelm, the Leicestershire-based homewares retailer, reported modest sales growth of 1.6% in the 13 weeks to December 27, and shares plunged 18% in morning trading.
- The company blamed an especially high level of competitive activity in both digital marketing and discounting and an ongoing challenging macroeconomic environment for tough conditions during Black Friday and the run-up to Christmas period.
- The group reported that its online sales rose to 42% over Christmas, with first-half sales reaching 926 million, up 3.6%.
- The group now expects financial 2026 pre-tax profit at the lower end of 214 million to 227 million, citing weaker festive trading that limited second-half growth prospects.
- Clo Moriarty, chief executive, said the performance reflected a strong first quarter followed by a more challenging close to the half, and the company will press ahead with plans to open two further superstores after its second London store in Wandsworth in November.
10 Articles
10 Articles
Dunelm sees digital share rise as omnichannel strategy underpins solid H1 performance - InternetRetailing
Dunelm reported a solid H1 performance despite a challenging retail environment. Digital channels continued to play a key role in growth. For the 26 weeks to 27 December 2025, total sales rose 3.6% year-on-year to £926m. Second-quarter sales were up 1.6% to £498m. Digital participation increased by two percentage points to 41% of total sales for the half and 42% in Q2. This includes home delivery, Click & Collect, and tablet-based in-store trans…
Dunelm hails "solid first half" in challenging environment
Homewares retailer Dunelm is painting a mixed picture after hailing a “solid first half” performance in a challenging environment, while anticipating the year’s profit to be at the lower end of expectations after a softer second quarter. For the period to ended 27 December 2025, total sales reached £926m, up from £894m in the same […]
Dunelm shares plummet by nearly a fifth despite strong first half
Shares in Dunelm Group have fallen by almost a fifth today after the UK homewares retailer warned full-year profits are now expected to come in at the lower end of market expectations. The update – and subsequent 17.6% share price dip – comes despite posting a solid first-half performance. The retail giant’s total sales rose 3.6% to £926 million in the first half of its financial year, helped by continued growth in its core categories and strong…
Dunelm sales grow in first half but Q2 slowdown hits outlook
Dunelm has reported a solid first-half performance despite noting that trading conditions became more challenging in the second quarter, prompting the homewares retailer to lower its full-year profit expectations. The group said total sales rose 3.6% to £926m in the six months to 27 December 2025, supported by a strong first quarter. Sales growth slowed in the second quarter to 1.6%, with revenue of £498m, as consumer demand weakened around Blac…
Dunelm’s underperformance is a sign of the times, says GlobalData
Retail Times publishes international & UK retail news covering products, data, tech, packaging, people, research, comment and more besides! Following today’s release of Dunelm’s figures for the 13 weeks ending 27 December 2025; Oliver Maddison, retail analyst at GlobalData, a leading intelligence and productivity platform, offers his view: “Dunelm underperformed relative to the lofty expectations it set in its Q1, seeing its Q2 sales grow by jus…
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