Highlights

  • Q1 FY26 total sales of DNLM increased 6.2% YoY to GBP 428m.
  • Gross margin improved by 80bps, supported by FX tailwinds and operational management.
  • Dunelm app launched and 'Home of Colour' brand campaign now live.

Dunelm Group plc (LSE:DNLM), the UK homewares retailer, reported trading for the 13-week period ending 27 September 2025. Total sales for Q1 FY26 reached GBP 428m, marking a 6.2% increase year-on-year, while digital sales participation rose by 3 percentage points to 40%, encompassing home delivery, Click & Collect, and in-store tablet-based orders.

Growth during the quarter was supported by higher volumes and increased average item values across product categories. Seasonal demand contributed to performance, particularly in warming textiles such as rugs and throws. Additionally, the company's student offer saw around 40% year-on-year growth, extending appeal to younger consumers.

Gross margin expanded 80bps year-on-year, largely due to favorable FX movements alongside ongoing operational management.

Strategic and Operational Updates

The first quarter included progress on key strategic priorities. The Dunelm app was launched on the Apple App Store, initiating a phase of digital development intended to enhance cross-channel shopping experiences.

The company also introduced the 'Home of Colour' brand campaign, highlighting its specialist range and encouraging cross-category coordination for home styling.

Outlook

Dunelm noted that while consumer conditions remain uncertain, FY26 PBT is expected to align with the Board's prior expectations. Investments in the business and inflationary pressures mean profits are anticipated to be weighted more heavily towards the second half of the year. The company continues to target a medium-term market share of 10%.

Clo Moriarty, CEO, stated:
“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."

Share performance

The company is currently trading at GBX per share1135.00, down by 1.05% slighty lower then the previous close of GBX 1148.