Dunelm reports a +6.3% rise in sales to £462m for Q3 ending 29 March 2025, driven by broad-based growth across homewares and furniture. Furniture categories perform particularly well, boosted by extended ranges and bold designs, while core textile products such as pillows and rugs also see strong demand.
Digital sales account for 41% of total revenue, up 4 percentage points year-on-year. The increase is supported by enhancements to online experience, including AI-powered search and strong click and collect performance. Smaller furniture items are now available for collection, improving fulfilment options.
Gross margin improves by 30bps year-on-year, as Dunelm maintains stable pricing and manages input costs effectively. Full-year gross margin is expected to remain between 51.5% and 52.0%.
New product launches include a colourful collaboration with designer Sophie Robinson, while warmer spring weather supports demand for the Summer Living range. The retailer opens two new superstores in Merthyr Tydfil and Bracknell and relocates its Peterborough store to a larger site, bringing its estate to 200 stores. Five new openings are planned this financial year.
Dunelm also acquires a freehold in Kingston upon Thames, targeting future expansion in this key area. Capital expenditure is now expected to be between £60m and £70m for the year. The company begins rolling out self-service tills, with plans to install them in over 100 stores by FY26.
CEO Nick Wilkinson states, 'We've had a good third quarter, with strong growth and further strategic progress.' Dunelm remains focused on expanding market share and strengthening its position as "The Home of Homes", while remaining cautious amid continued economic uncertainty. Full-year profit before tax is expected to be in line with consensus at £208m.
Source: www.furniturenews.net