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Homewares retailer Dunelm has reported sales growth of 2.1% to £472m in its third quarter of trading, while its full-year profits are currently forecasted to fall towards the “lower end of consensus expectations”.
For the 13 weeks ended 28 March 2026, total sales were up 3.1% to £1.4bn in the year-to-date, while its gross margin climbed by 30bps year-on-year.
The group attributed its strong third quarter performance to a strong winter sale and a favourable market reception to its new spring lines.
It said that the “universal appeal” of its products continued to strike a chord with customers, although March saw business slow down across the board.
When it came to its expanding gross profit, the firm said it was still benefiting from favourable foreign exchange tailwinds established in the first half of the financial year, while shoppers increasingly prioritised value-tier and promotional items over full-price collections.
Looking ahead, Dunelm said it anticipates that the direct financial implications of the ongoing conflict in the Middle East will only have marginal direct financial implications this financial year.
However, it said that it is not expecting consumer confidence to improve, leading to its prediction that full-year profits will fall below earlier forecasts.
Clo Moriarty, chief executive officer, said: “We saw further sales growth in Q3, against an uncertain backdrop for both customers and businesses. Although the external environment is not helpful in the short term, we continue to focus on the areas within our control – strengthening our proposition while operating efficiently and effectively.
“Alongside this, we are making good progress building our long‑term growth plans with some exciting developments beginning to emerge, including a much stronger store opening pipeline and some encouraging early results from our recently launched app.”
She added: “Our final quarter provides multiple opportunities for Dunelm to stay front of mind for customers, including our popular Summer Sale. We remain confident that our comprehensive offer will continue to resonate with homelovers.”
