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Highlights

  • Dunelm records sales of £1,771 million, up 3.8% year-on-year, with profit before tax rising to £211 million.

  • Market share grew to 7.9%, supported by higher customer numbers and digital penetration at 40% of sales.

  • Strategic expansion included six new superstores, two acquisitions, and investment in a new manufacturing facility.

Dunelm Group plc (LSE:DNLM), the UK’s leading homewares retailer, released its preliminary results for the 52 weeks ending 28 June 2025. The Group delivered sales of £1,771 million, an increase of 3.8% compared with FY24. Profit before tax rose 2.7% to £211 million, with a stable margin of 11.9%, despite ongoing inflationary pressures.

Gross margin improved to 52.4% from 51.8% in the prior year. Free cash flow came in at £127 million, slightly below FY24’s £132 million, reflecting higher capital investment despite stronger operating cash flows.

The Board declared a final ordinary dividend of 28.0 pence per share (FY24: 27.5 pence), taking the total ordinary dividend for the year to 44.5 pence. Including a special dividend already paid, total dividends declared reached 79.5 pence per share, up from 78.5 pence last year.

Market Share and Customer Growth

The Group increased its combined homewares and furniture market share to 7.9%, compared with 7.7% in FY24. Growth was driven by a balanced mix of higher sales volumes and increased average item values, supported by product and category diversification.

Active customer numbers rose by 80 basis points year-on-year, with higher purchase frequency also contributing. Digital accounted for 40% of total sales, up from 37% in FY24, supported by notable growth in Click & Collect.

Strategic Investments and Expansion

During FY25, Dunelm opened six new superstores, including its first store in inner London. The Group also completed two acquisitions: a 13-store retailer in Ireland and the brand and archive of Designers Guild.

Further investment included the establishment of a Made-to-Measure blinds and shutters manufacturing facility, reinforcing Dunelm’s capability in vertically integrated product offerings.

Outlook

Early trading in FY26 has been described as encouraging, although management noted the absence of a sustained consumer recovery. The Group remains focused on enhancing its customer proposition, with new Autumn/Winter product ranges receiving positive feedback.

Dunelm plans to launch a dedicated mobile app in autumn 2025, expand its store portfolio further, and continue investing in growth and productivity initiatives. Looking ahead, the Group aims to increase its market share towards a 10% medium-term target, positioning itself for sustainable, profitable growth.