Dunelm has reported a 3.1 per cent increase in sales to £1.83bn for FY26, as the homewares retailer continued to gain market share despite challenging trading conditions.
The retailer increased its share of the UK homewares and furniture market to 7.9 per cent, up from 7.8 per cent a year earlier. Digital sales rose 9.1 per cent, with digital participation increasing two percentage points to 42 per cent of total sales.
Profit before tax remained flat at £211m, while gross margin edged up to 52.5 per cent. Free cash flow strengthened significantly, rising from £127.4m to £154.8m.
Dunelm continued to invest across stores and digital during the year, opening new locations in Wandsworth and Kingston-upon-Thames and progressing its store refurbishment programme. Its recently launched app is also delivering higher conversion rates and average order values, while the retailer has begun beta testing conversational commerce through ‘Ask Dunelm’.
Customer satisfaction improved by 2.4 percentage points, supported by changes to store operations and improvements to Click & Collect.
However, the retailer reported significantly softer trading during the first six weeks of FY27 amid extended hot weather, although performance has improved in recent weeks. Dunelm has also announced updated strategic plans focused on becoming a bigger homewares specialist, delivering more seamless omnichannel experiences and strengthening its capabilities for sustainable growth.
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