Dunelm Group (DNLM) H1 2026 earnings summary

Executive summary

• Achieved 3.6% year-on-year sales growth in H1 to £926.3m, with strong Q1 and softer Q2, rebounding into H2.

• Gross margin improved by 60bps to 53.4%, driven by FX gains and disciplined promotions.

• Market share increased to 7.9%, outpacing the UK homewares and furniture market.

• Digital sales participation rose by 2 percentage points to 41%, supported by new product ranges and app launch.

• Profit before tax declined 7.5% to £114.0m, reflecting higher operating costs and softer Q2 trading.

Financial highlights

• Revenue rose to £926.3m (up 3.6% year-on-year), with gross profit at £494.7m and gross margin at 53.4%.

• Free cash flow was £171.4m, aided by a £93m timing benefit.

• Diluted EPS fell to 41.7p from 45.0p year-on-year.

• Net cash at period end was £13.3m, down from £57.1m.

• Interim dividend increased to 17.0p per share (up 3% year-on-year); special dividend of 25.0p declared.

Outlook and guidance

• Confident in delivering full-year PBT in line with consensus expectations (£214m average).

• CapEx guidance for the year reduced to £40m due to timing of store openings.

• Productivity gains expected to accelerate in H2, with further benefits from self-serve checkouts and efficiency initiatives.

• Effective tax rate expected to remain 50–100bps above headline rate.