Dunelm Group (DNLM) investor relations material

Executive summary

• Sales increased by 3.8% year-over-year to £1,771.0m, with digital sales now 40% of total and market share up to 7.9%.

• Profit before tax rose 2.7% to £211 million, with a stable PBT margin of 11.9% and diluted EPS up 3.2% to 76.8p.

• Growth was broad-based, with higher volumes, higher average item values, and strong customer growth, especially in London and among younger demographics.

• Strategic investments included new store openings, first international sales, new manufacturing capabilities, and acquisitions in Ireland and of the Designers Guild brand.

• CEO transition announced, with Chloe Moriarty to succeed Nick Wilkinson.

Financial highlights

• Revenue reached £1.8 billion, up 3.8% year-over-year, with stronger growth in H2.

• Gross margin improved by 60 basis points to 52.4%.

• Diluted EPS increased by 3.2% to 76.8p.

• Operating cash flow rose 10% year-over-year to £256m; free cash flow was £127 million after higher CapEx.

• Net debt ended at £102 million, with a net debt/EBITDA ratio of 0.3x.

Outlook and guidance

• CapEx for FY26 guided at around £50 million, targeting 5–10 new superstores, at least one Inner London store, and continued refits.

• Working capital expected to be broadly neutral, with a timing benefit of £90 million at H1 end.

• Effective tax rate expected to remain 50–100 basis points above the UK corporation tax rate.

• Early FY26 trading is positive, but no clear signs of sustained consumer recovery.

• Continued focus on strategic initiatives, including the launch of a new app in autumn and further market share gains.