Dunelm Group (DNLM) Q4 2026 TU earnings summary

Executive summary

• Achieved Q4 sales growth of 2.9% to £428m, with full-year sales up 3.1% to £1,825m.

• Digital sales participation rose to 45% in Q4 and 42% for the year, reflecting ongoing digital investment.

• Gross margin improved by 10bps year-over-year to 52.5%.

• Profit before tax (PBT) expected to be in line with consensus at £210m.

• Strong cash generation, with about 70% of operating profit converted to free cash.

Financial highlights

• Q4 sales reached £428m, up 2.9% year-over-year, despite weather-related footfall impacts.

• Full-year sales totaled £1,825m, up 3.1% from the prior year.

• Gross margin for FY26 at 52.5%, up 10bps year-over-year.

• Net operating cost plans delivered, including £7m insurance income from store closures.

• Capex for the year expected around £40m; small net cash inflow after £141m dividend payments.

Outlook and guidance

• FY26 PBT expected to be in line with previous guidance and consensus (£210m).

• Strategic update and preliminary results scheduled for September 2026.

• Pipeline for new store openings in FY27 expected at the upper end of 5–10 superstores per year.