Dunelm warns of uncertainty ahead despite ‘strong’ growth
Homewares retailer Dunelm revealed “strong sales” over its third quarter, as the group generated over six per cent growth across its homewares and furniture categories.
CEO Nick Wilkinson stated that the group “had a good third quarter, with strong growth and further strategic progress” and that “the Dunelm brand continues to attract a broad range of customers.”
After leading the company through the pandemic, Wilkinson recently announced his plans to step down from the CEO role.
Its sales over Q3 grew to £462m, with digital sales up four percentage points to 41 per cent.
The group stated that its profit before tax for the full year 2025 would be in line with consensus, which is £208, with a range of £204m to £214m.
Dunelm said it has made “further progress” with its strategic priorities, which focus on its approach to sustainable, long-term growth and build on its proposition “as the Home of Homes.”
As it continues to connect with more customers, the group is “increasingly using data and insight to drive decision-making across the business.” This includes enhancing the digital experience and expanding stores.
Over Q3, the group opened two new stores, one in Merthyr Tydfil and the other in Bracknell, bringing the total to 200. It added that it will open five new superstores in the whole year.
It added that it has also completed a freehold acquisition in Kingston upon Thames, “a key target area of ‘white space'”, which the group expects to open in FY26.
As guided by its interim results in February, Dunelm expects capital expenditures for the year to be between £60m and £70m as a result of this acquisition.
Wilkinson added that “we continue to see new opportunities, filling ‘white space’ in our physical estate through a variety of store formats”.
Looking forward, the group told shareholders that the wider market was stronger in Q3 than in the first half; however, it added that it is too early to say whether or not it is seeing an improved trend.
“We are also mindful of increased levels of uncertainty and volatility in the current environment, and the known labour cost headwinds. We remain confident in our plans and the strategic progress we are making, and are on track to achieve our milestone of 10 per cent market share in the medium term.”