Dunelm Group plc, announced a strong trading performance for the first quarter of FY26, reporting total sales of £428 million, up 6.2% year-on-year for the 13 weeks ended 27 September 2025. Digital participation rose to 40%, up three percentage points compared to the same period last year.
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Gross margin increased by 80 basis points, reflecting favourable foreign exchange tailwinds and continued operational discipline. The Group's broad product mix and strong value proposition across all price points contributed to sales growth, as customers prepared their homes for the autumn and winter months. Categories such as rugs and throws performed particularly well, reinforcing Dunelm's reputation as "The Home of Homes."
Chief Executive Officer Clo Moriarty commented:
"After a few weeks immersing myself in the business, I'm delighted to see up close the qualities that attracted me to Dunelm: an inclusive culture, committed colleagues, and a genuine passion for the role we play in our customers' lives.
"It's a great time to be joining Dunelm. The business has delivered another strong performance in the first quarter, which reflects both the appeal of our customer offer and the strength of our business model. Building on this, I see real energy across the business, from the launch of our new app, to a vibrant brand campaign celebrating colour choices across our ranges, driving improvements to our proposition. These initiatives, and many more, show the potential we have to build even deeper connections with a broad and diverse customer base. With the reach of our national store footprint, a growing digital presence, and a growth mindset that brings together people and technology, I'm genuinely excited about what's ahead."
The quarter also saw the launch of the Dunelm mobile app, marking an important milestone in the company's digital development. Over the coming year, Dunelm plans to expand its functionality to enhance cross-channel shopping experiences. The brand also launched its new 'Home of Colour' campaign, designed to inspire customers to coordinate styles across product categories.
Looking ahead, the Group expects profits to be more weighted towards the second half of FY26, consistent with the timing of planned investments and inflationary pressures, and full-year profit before tax remains in line with Board expectations.
Dunelm continues to make strong progress toward its medium-term goal of achieving 10% market share, supported by its multi-channel reach, resilient business model, and strategic investments for sustainable, profitable growth.
More information:
Dunelm
www.dunelm.com
