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Dunelm has welcomed a “solid” first half of trading, despite seeing profits fall by 7.5% amid a “challenging environment” and softer Q2 trading.
In the half-year ended 27 December 2025, pre-tax profits fell to £114m, down from £123.2m the prior year, despite sales rising by 3.2% to £926.3m over the period.
The group said this sales growth was ahead of the combined homewares and furniture market, with its market share up by 20bps to 7.9%.
In addition, the digital percentage of its total sales rose from 39% to 41% over the half-year.
Looking ahead, the group said it has seen a “stronger sales growth” in Q3 following the softer second quarter, with its performance more in line with H1 as a whole. It added that full-year profits are expected to be in line with expectations.
CEO Clo Moriarty said: “Since joining Dunelm in October, I’ve been struck by the magic that has turned this very special business from a market stall into a market leader. Dunelm is a universal brand with something for everyone, powered by a compelling combination of physical stores, a growing digital platform, and passionate colleagues who care deeply about delivering for customers.
“We delivered a solid first‑half performance despite a softer second quarter, and we are seeing stronger sales growth in early Q3 following a good Winter Sale and an encouraging response to our new Spring ranges.”
She added: “What I’ve seen so far gives me real confidence in our future. With only 7.9% market share and clear opportunities to enhance and expand our assets, we have significant headroom for growth.
“We will build on our existing strengths with relentless customer focus, product excellence and retail rigour, underpinned by the financial discipline for which Dunelm is known. There is much more in the tank, and I’m excited for what lies ahead.”
