Dunelm Group (DNLM) H2 2026 earnings summary

Executive summary

• Achieved 3.1% total sales growth year-over-year, reaching GBP 1,825.5 million, with market share rising to 7.9% in the UK homewares and furniture sector.

• Gross margin expanded to 52.5%, up 10 basis points year-over-year, and profit before tax held flat at GBP 211 million with a PBT margin of 11.6%.

• Customer satisfaction increased 2.4% overall and 3% in stores, maintaining top quartile performance.

• Free cash flow rose to GBP 155 million from GBP 127 million, supporting investment and higher dividends.

• Ordinary dividend per share increased to GBP 0.455, with a special dividend of GBP 0.25 per share paid.

Financial highlights

• Revenue grew to GBP 1,825.5 million from GBP 1,771.0 million year-over-year.

• Gross margin at 52.5%, up 10 basis points year-over-year.

• Profit before tax flat at GBP 211 million; PBT margin at 11.6%, down 30 basis points.

• Diluted EPS flat at GBP 0.768; basic EPS GBP 0.77.

• Net debt ended at GBP 94.6 million, with a net debt/EBITDA ratio of 0.3x.

Outlook and guidance

• Q1 trading for FY27 has been mixed, with weather impacting early results but normalizing recently.

• Board expresses confidence in future prospects, reflected in increased ordinary and special dividends.

• Announced updated strategic plans and FY27 guidance focused on building a larger, more robust business.