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17 July 2025

Dunelm Group plc

Q4 and full year trading update

Good performance in Q4, full-year PBT in line with consensus

Dunelm Group plc ("Dunelm" or "the Group"), the UK's leading homewares retailer, updates on trading for the 13-week period ended 28 June 2025 and for the full year.

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

Highlights

·    Q4 sales up 4.0%, with digital participation at 42%, up 2ppts year-on-year

·    Full-year sales of £1,771m up 3.8%

·    Full-year gross margin expected to be up 60bps year-on-year, reflecting our strong commercial and operational grip

·    FY25 PBT expected to be in line with consensus², reflecting a broadly stable PBT margin year-on-year

·    Good progress against strategic priorities; invested in four new superstore openings in the final quarter (including one relocation) and completed the acquisition of Designers Guild brand and archive

·    Clo Moriarty appointed as CEO, with effect from 1 October 2025

² Company compiled consensus average of analysts' expectations for FY25 PBT is £210m, with a range of £207m to £215m

Continued sales growth and a good Summer Sale

Q4 FY25

We are pleased to report total sales for the final quarter of £415m, up 4.0% against a good Q4 last year. The period included our Summer Sale, during which both full-priced and discounted products performed well, as customers enjoyed exceptional value alongside exciting new products across the breadth of our ranges.

Across our categories, furniture has continued to perform particularly strongly. Our outdoor furniture and decorative outdoor accessories sold very well, especially in the warmer periods at the start and end of the quarter, when there was less demand for some of our warmer weather textiles products.

FY25 full year

Total sales of £1,771m grew by 3.8% on the previous year, with digital sales accounting for 40% of the total, up 3ppts year-on-year. Whilst we are yet to see sustained recovery in consumer confidence, our customers continue to respond to the relevance of our product offer and our fast and convenient channels.

Gross margin and PBT

Gross margin is now expected to be 60bps higher year-on-year, ahead of our guided range. In the final quarter, the strong performance of our full-price ranges, alongside the limited discounting and strong sell-through of our seasonal ranges, strengthened our gross margin. Throughout the year, pricing has remained broadly stable. We have also maintained our grip on input costs across our supply chain, carefully managing freight and FX, with the latter a small tailwind only towards the end of year.

We expect to deliver a broadly stable PBT margin for the full year, as anticipated and in line with our medium-term guidance, despite another year of inflationary cost increases and continued investment in the business. Profit before tax is therefore expected to be in line with consensus³ for FY25.

³ Company compiled consensus average of analysts' expectations for FY25 PBT is £210m, with a range of £207m to £215m

Strategic and operational update

We made further progress against our strategic priorities, with an ongoing focus on our long-term ambitions.

We invested in four new stores in the quarter: one small superstore in Trowbridge and large superstores in Manchester and Southend; we also relocated our Peterborough store to a larger, better located site. This now brings the total number of new superstores opened in FY25 to six, not including our first inner London store at Westfield, and demonstrates the increasing variety of formats and sizes we now have within our store estate.

We also acquired the Designers Guild brand and design archive. We are excited about the opportunities this provides to participate in the growth of an iconic brand and support its continued development.

Our strong digital performance in the final quarter reflects the aggregate impact of improvements made throughout the year to our customers' digital experience. The introduction of AI-powered search, recommendations and browse is driving increasingly personalised experiences, alongside a more convenient shopping experience through the expansion and optimisation of our Click & Collect proposition.

Summary and outlook

We are pleased with our overall performance in Q4 and the full year. FY25 has been a year in which we have delivered high quality sales growth and a broadly stable PBT margin. We have again made good progress against each of our three strategic priorities: to elevate our product offer; to connect with more customers; and to harness our operational capabilities.

Whilst we are yet to see signs of a consumer recovery, we continue to in invest in the business and make progress against our strategy, as we are confident in our plans and ability to deliver further market share gains.

We are focused on staying relevant for our customers; we offer them outstanding value, quality and choice for their homes. Our performance is underpinned by our resilient business model, reinforcing our confidence in our plans to unlock our full potential as the Home of Homes.

Nick Wilkinson, Chief Executive Officer, commented:

"We've had a good final quarter with continued growth and further strategic progress. Customers responded well to offers across our categories in our Summer Sale, and we saw strong demand for our Summer Living ranges, particularly as customers focused on their outdoor spaces during the warmer weather.

"We opened four new superstores in the final quarter alone, and our acquisition of the Designers Guild brand and archive presents an exciting opportunity to introduce new, iconic designs to our customers. These strategic developments conclude a year marked by a number of 'firsts', including international expansion into Ireland; deploying AI to improve our website experience; and opening our first inner London store at Westfield White City.

"Amidst muted consumer confidence, we are not standing still waiting for a recovery. We are instead focused on delivering relevance to our customers, to help build greater trust in the quality, value and breadth of our offer, harnessing our unique strengths as a multi-category specialist. As we progress our ambitions to gain further market share, we remain confident in our ability to unlock our full potential as the Home of Homes."

For further information please contact:

Next scheduled event:

Dunelm will make its preliminary results announcement on 9 September 2025. There will be an in-person presentation for analysts and institutional investors at 9.30am, hosted at Peel Hunt LLP, 100 Liverpool Street, London, EC2M 2AT, as well as a webcast and conference call with a facility for Q&A. For details, please contact hugo.harris@mhpgroup.com. A copy of the presentation will be made available at https://corporate.dunelm.com 

Quarterly analysis:

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 c.95,000 products, 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 202 stores across the UK and Ireland and has developed a successful online offer through dunelm.com which includes home delivery and Click & Collect options. 159 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.12,000 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 IPO⁴.

⁴ Ordinary dividends plus special distributions