15th Oct 2026 09:32
(Alliance News) - Dunelm Group PLC on Thursday said sales had improved towards the back end of the September quarter after a slow start due to the hot weather.
The Leicester-based home furnishings and furniture retailer said sales in the 13 weeks to September 26, the first quarter of its financial year, rose 1.1% to GBP432.7 million from GBP428.1 million the year prior.
Trading performance strengthened as the quarter progressed, with sales down around 3% year-on-year in the first six weeks during a period of exceptionally warm weather, before returning to growth of around 4% in the final seven weeks, it said.
"Despite the challenging trading backdrop, we believe we continued to outperform an overall soft market," Dunelm added.
Shares in the company were up 7.0% at 857.25 pence each in London on Thursday morning but have fallen 23% in the last 12 months.
Dunelm highlighted double digit growth in Made to Measure and said Cook and Dine also performed well, particularly in the second half of the quarter.
Gross margin increased by 10 basis points year-on-year in the quarter, benefiting from a foreign exchange tailwind.
Dunelm said expectations for financial 2027 adjusted pretax profit remain unchanged and broadly in line with GBP211.0 million reported in the 52 weeks ended June 27. It currently expects adjusted pretax profit to be lower than the prior year for the first half of the financial year.
Dunelm reported "good progress" with 'Winning Hearts & Homes', its three-year growth plan unveiled in September. The firm is aiming to cut GBP100 million from its cost base and invest GBP125 million to expand and freshen up its stores.
Dunelm said new store expansion plans are progressing well, with two openings expected in the first half of the financial year. It has completed five store renewals, including one since the quarter end, with encouraging sales uplifts seen in early weeks of trading. A refitted store in St Albans is delivering strong sales growth, it added.
Chief Executive Clo Moriarty said the early signs from the strategic changes are "encouraging and reinforce our confidence in the opportunity ahead."
By Jeremy Cutler, Alliance News reporter
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