Dunelm delivers ‘solid’ trading but lower profit
Dunelm has said it delivered solid first half trading despite a drop in profit and what it described as a challenging trading environment.
In the six months to 27 December 2025, total sales grew by 3.6% to £926.3 million after an increase of 6.2% in the first quarter and 1.6% in the second.
Subscribe to TRBThe homewares retailer partly attributed the softer second quarter growth to a its decision to have a disciplined approach to promotional activity in the lead-up to Christmas and holding its two main sales in January and June. However, this approach is currently being reviewed. It also said trading was impacted by a challenging homewares market and an extremely competitive Black Friday period.
Pre-tax profit came in at £114 million compared to £123 million a year earlier. Dunelm attributed this to the timing of certain costs and the softer second quarter trading.
Clo Moriarty, Dunelm chief executive, 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.
“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.”
Giving an update on more current trading, Dunelm said it has seen stronger sales growth in its third quarter to date which is more in line with the first half.
The company remains confident in its second half plans, including its full app launch this spring and furniture availability recovery.
Moriarty added: “What I’ve seen so far gives me real confidence in our future. With only 7.9%5 market share and clear opportunities to enhance and expand our assets, we have significant headroom for growth.
“We will build on our existing strengths with relentless customer focus, product excellence and retail rigour, underpinned by the financial discipline for which Dunelm is known. There is much more in the tank, and I’m excited for what lies ahead.”
Dunelm is expecting full year pre-tax profit to be in line with expectations.
