Dunelm posted higher third-quarter sales but warned that full-year profit will likely be at the lower end of expectations due to a tougher consumer backdrop.
For the 13 weeks to 28 March 2026, Q3 sales rose 2.1% to £472 million, while year-to-date revenue increased 3.1% to £1.3 billion. The retailer said trading started strongly after its Winter Sale and new Spring product launches, but demand softened in March.
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Gross margin improved by 30 basis points year-on-year, supported by earlier foreign exchange benefits. However, customers increasingly opted for discounted products, highlighting continued price sensitivity.
Dunelm said instability in the Middle East should have only a limited direct cost effect this year, but wider global uncertainty has weakened confidence.
The group now expects FY26 profit before tax of around £213 million, within a £210 million to £217 million range.
Clo Moriarty said the company remains focused on efficiency, customer value and long-term growth opportunities.
Dunelm also reported encouraging early results from its recently launched mobile app, which has exceeded 300,000 downloads. A stronger pipeline of new stores is planned for the next financial year, including Kingston-upon-Thames this summer.
The update reflects wider caution across UK home retail, where value-led operators remain resilient but discretionary spending is still under pressure.
Source: www.bigfurnituregroup.com
