Dunelm Group
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Dunelm Group (DNLM) investor relations material

Dunelm Group H1 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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H1 2026 earnings summary10 Feb, 2026

Executive summary

  • Achieved 3.6% year-on-year sales growth in H1 to £926.3m, with strong Q1 and softer Q2, rebounding into H2.

  • Gross margin improved by 60bps to 53.4%, driven by FX gains and disciplined promotions.

  • Market share increased to 7.9%, outpacing the UK homewares and furniture market.

  • Digital sales participation rose by 2 percentage points to 41%, supported by new product ranges and app launch.

  • Profit before tax declined 7.5% to £114.0m, reflecting higher operating costs and softer Q2 trading.

Financial highlights

  • Revenue rose to £926.3m (up 3.6% year-on-year), with gross profit at £494.7m and gross margin at 53.4%.

  • Free cash flow was £171.4m, aided by a £93m timing benefit.

  • Diluted EPS fell to 41.7p from 45.0p year-on-year.

  • Net cash at period end was £13.3m, down from £57.1m.

  • Interim dividend increased to 17.0p per share (up 3% year-on-year); special dividend of 25.0p declared.

Outlook and guidance

  • Confident in delivering full-year PBT in line with consensus expectations (£214m average).

  • CapEx guidance for the year reduced to £40m due to timing of store openings.

  • Productivity gains expected to accelerate in H2, with further benefits from self-serve checkouts and efficiency initiatives.

  • Effective tax rate expected to remain 50–100bps above headline rate.

Q2 trading approach review details
Address store white space expansion delays
How to increase loyal customer spend share?
Accelerate store expansion beyond 5-10 annually?
Are H2 OpEx savings sustainable long-term?
How to elevate brand perception beyond 'actually good'?
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Next Dunelm Group earnings date

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Q3 2026 TU16 Apr, 2026
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Q3 2026 TU16 Apr, 2026

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Frequently asked questions

Dunelm Group plc, a United Kingdom-based retail group, retails home furnishings and related accessories through its Dunelm and Millets banners and operates two other smaller complementary retail brands. The company owns approximately 700 stores in the country. It also sells products through its e-commerce website, Phone Direct, as well as operates a chain of dormitory stores for students. The company was founded in 1979 and is based in Syston, England.

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