The homewares retailer blames the “ongoing challenging macroeconomic environment” as it said profit before tax will now come in at the lower end of consensus expectations
Dunelm reported 1.6% sales growth in the 13-week period to December 27, 2025, below what the business had been expecting.
The company’s first half of the year came in more strongly at 3.6%, following a strong first quarter. However, Dunelm said trading had been more challenging in the run-up to Christmas, particularly around Black Friday.
“As in recent years, we also continued to be disciplined in our promotions during this period, but this year we saw an especially high level of competitive activity in both digital marketing and discounting,” Dunelm said in a statement released alongside the results.
The brand said it now believed profit before tax for the first half of the year would land at between £112m and £114m, with its expectation for the full year towards the low-end of consensus estimates of between £214 and £227m.
“While the UK retail environment remains variable, we have acted on some clear lessons from the first half, including targeted steps to improve availability, ensuring customers can access our fantastic ranges seamlessly, however they are shopping with us,” said Dunelm chief executive Clo Moriarty.
The brand added that trading has been strong since the end of the quarter, with customers responding well to its winter sale offers. Digital represented 42% of total sales, up from 40% in the same quarter in 2024.
Milestones during the quarter included Dunelm opening its second inner London store in Wandsworth and reopening the doors of a Yeovil store that was hit by a fire in 2024.
“I see multiple opportunities to extend Dunelm’s market-leading position – there is much more in the tank. As such, we are now moving forward with energy and discipline, actively building new plans while executing existing ones to ensure we are the first choice for all home lovers,” added Moriarty.
No comments yet