Homewares retailer Dunelm has announced its interim results for the 26 weeks to 27 December 2025, confirming a solid H1 FY26 that saw sales growth and sustained digital momentum despite difficult market conditions. Total sales rose 3.6% year-on-year to £926m, up from £894m the prior year.
The performance keeps Dunelm ahead of the wider homewares and furniture market, lifting its market share by 20bps to 7.9%. Digital participation for the half reached 41%, two percentage points higher than last year, pointing to the success of the retailer’s omnichannel strategy in reaching customers where they are.
Softer second quarter
A trading update published in January showed that Q2 contributed £498m of those sales – up 1.6% year-on-year – meaning a softer second quarter for the retailer, although in line with the wider retail experience around Christmas 2025. However, digital penetration was stronger in the quarter at 42%, boosted by home delivery, Click & Collect, and in‑store tablet transactions.
Gross margin remained robust at 53.4%, an uplift of 60bps driven largely by FX gains, while maintaining stable retail prices. Profit before tax came in at £114m, down from £123m last year, reflecting a softer Q2 and the timing of certain costs. Free cash flow increased to £171m. The Board declared an interim dividend of 17.0 pence per share and a special dividend of 25.0 pence.
Omnichannel investment supporting growth
Operationally, Dunelm continued to invest in its omnichannel capabilities. Its new customer app launched on Apple and Android devices ahead of a full rollout this spring, and the retailer has also expanded its physical footprint, opening a second inner London store in Wandsworth and reopening its Yeovil superstore.
CEO Clo Moriarty said: “Since joining Dunelm in October, I’ve been struck by the magic that has turned this very special business from a market stall into a market leader. Dunelm is a universal brand with something for everyone, powered by a compelling combination of physical stores, a growing digital platform, and passionate colleagues who care deeply about delivering for customers.”
She added: “We delivered a solid first half performance despite a softer second quarter, and we are seeing stronger sales growth in early Q3 following a good Winter Sale and an encouraging response to our new Spring ranges.”
Analysts have also noted a stronger start to Q3, which mirrors consumer behaviour across the sector as shoppers respond positively to winter promotions. Dunelm expects FY26 profit before tax to align with current market expectations, which sit between £210m and £221m, and says it sees “significant headroom for growth” as it continues strengthening its proposition.
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