Dunelm Group (DNLM) Q3 2025 TU earnings summary

Executive summary

• Q3 sales rose 6.3% year-over-year to £462m, with broad-based growth across homewares and furniture categories.

• Digital sales participation increased to 41%, up 4 percentage points year-over-year, driven by online experience enhancements and Click & Collect.

• Gross margin improved by 30bps year-over-year; full-year guidance remains at 51.5%-52.0%.

• Opened two new stores in Q3, reaching a milestone of 200 stores, and completed a key freehold acquisition for future expansion.

• FY25 profit before tax expected to be in line with consensus (£208m, range £204m-£214m).

Financial highlights

• Year-to-date sales reached £1,356m, up 3.7% year-over-year.

• Q3 digital sales accounted for 41% of total, up from 37% in Q1.

• Gross margin up 30bps year-over-year, reflecting stable pricing and operational cost control.

Outlook and guidance

• FY25 PBT expected in line with consensus; capex for the year guided at £60m-£70m due to property acquisition.

• On track to open five new superstores in FY25, including one relocation.

• Aims to achieve 10% UK homewares market share in the medium term.