Dunelm reported sales of £1.826 billion for the 52 weeks ended June 27, 2026, an increase of 3.1% from £1.771 billion in fiscal 2025.
The UK homewares retailer reported store-enabled like-for-like sales growth of 0.8%, while digital sales increased to 42% of total sales from 40% a year earlier.
Gross margin improved by 10 basis points to 52.5%. Profit before tax remained unchanged at £211 million, while diluted EPS was flat at 76.8 pence.
Free cash flow increased to £154.8 million from £127.4 million and represented approximately 69% of operating profit, compared with 57% in fiscal 2025. Net debt declined to £94.6 million from £102 million.
Dunelm’s market share increased by 10 basis points to 7.9%, while customer satisfaction improved by 2.4 percentage points. The company said profit remained flat because higher revenue and gross margins were offset by inflation, volume-related expenses, and ongoing investment.
The company opened two new stores during the year, including a smaller-format location in Wandsworth and a superstore in Kingston-upon-Thames, and reopened its Yeovil store following a serious fire.
Dunelm also launched its mobile app, which has reached approximately 740,000 downloads. Customers using the app are spending approximately 40% more per transaction, while conversion is more than one percentage point higher than other channels.
The retailer has introduced a beta AI-powered shopping assistant within the app as part of its continued investment in digital capabilities.
Dunelm recommended a final ordinary dividend of 28.5 pence per share, bringing the full-year ordinary dividend to 45.5 pence, up 2.2%. Including the 25-pence special dividend paid in April, total dividends declared for the year were 70.5 pence per share.
The company also outlined a three-year strategic plan called Winning Hearts & Homes. The strategy focuses on becoming a homewares specialist with something for everyone, delivering seamless omnichannel experiences, and transforming internal capabilities to support sustainable growth.
Dunelm cautioned that unusually hot weather resulted in significantly weaker trading during the first six weeks of fiscal 2027. However, trading subsequently improved, with stronger online conversion and increasing store traffic.
KEY QUOTES:
“We delivered a solid performance for the year, growing sales, maintaining profits and generating strong cash returns for shareholders. My sincere thanks go to our loyal customers, our valued suppliers for their ongoing partnership and of course our tremendous colleagues who make all of this happen. 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 building on the proven strengths that have made Dunelm so successful and by developing the capabilities that will support the next phase of growth, we believe we can create a bigger, better and bolder Dunelm for all our stakeholders.”
Clo Moriarty, Chief Executive Officer of Dunelm
