8th Sep 2026 10:54
(Alliance News) - Dunelm PLC on Tuesday reported steady annual profit and a slight revenue hike, and the homewares retailer announced a three-year growth plan.
The plan will see the firm "saving to invest" by removing some GBP100 million of unproductive costs by financial 2029.
Dunelm shares were down 12% at 777.00 pence per share on Tuesday morning in London.
The company noted the impact of the UK's "unusually hot weather", which it claimed caused "significantly softer sales in the first six weeks of FY27". Trading improved after cooler weather, Dunelm said.
Alongside the aim to trim GBP100 million from its cost base, it noted non-recurring expenditure totalling GBP30 million to GBP40 million across the next two years. This is "primarily to strengthen our foundational infrastructure".
It also noted increased capital expenditure, totalling some GBP125 million above its recent run-rate across the next three years. This will go towards the expansion and renewal of its stores. The plan aims for "a return to sustainable mid-to-high single-digit sales growth".
The Leicester, England-based firm reported pretax profit for the year ended June 27 was flat at GBP211.0 million, though total sales edged up 3.1% to GBP1.83 billion from GBP1.77 billion.
Dunelm raised its final dividend by 1.8% to 28.5 pence per share from 28p, bringing the total ordinary dividend to 45.5 pence, up 2.2% from 44.5 pence.
In April, Dunelm paid a 25 pence special dividend. The special dividend for the year fell from 35 pence. Total dividends for financial 2026 therefore amounted to 70.5 pence, down 11% from 79.5 pence.
Chief Executive Clo Moriarty said: "We delivered a solid performance for the year, growing sales, maintaining profits and generating strong cash returns for shareholders. Over the last year, we have taken a deep and honest look at our business and the opportunities ahead to better serve our customers and drive the group's performance. This work has given us confidence that the opportunity in front of Dunelm is larger than we previously understood, but also that we need to evolve.
"The strength of our business and balance sheet means we are well placed to invest for the future and accelerate our growth trajectory. To capture our opportunity, we are launching 'winning hearts & homes', a customer-led, self-funded plan to strengthen our market leadership position."
By Niall Holden, Alliance News reporter
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