Home furnishings retailer Dunelm reported a 1.6% increase in Q2 sales to £498m and 3.6% growth in half-year revenue to £926m for the 13-week period ending 27 December 2025. CEO Clo Moriarty noted the first half delivered a "solid performance," although Q2 was softer than expected due to intense digital competition and discounting.
© Ben Gingell | Dreamstime
Growth was driven by bedding, towels, lighting, and Made-to-Measure products, while furniture sales were softer due to availability issues. Gross margin increased 60bps year-on-year, aided by FX tailwinds. Dunelm also opened its second inner London store in Wandsworth, reopened Yeovil after a fire, and plans up to two further Superstores in H2.
The new Dunelm App launched on Apple and Android, with a full rollout in February. Pre-tax profit is forecast at £112–114m for H1 and £214–227m for the full year, at the lower end of market expectations. Moriarty emphasised plans to improve availability and strengthen Dunelm's market-leading position.
Source: www.bigfurnituregroup.com
