Dunelm has reported higher sales and profits in its latest financial year, as it hit several milestones including opening its 200th store, expanding into Ireland and strengthening its digital proposition.
For the 52 weeks to 28 June 2025, group sales at the homewares retailer rose 3.8% to £1.77bn, while pre-tax profit edged up 2.7% to £211m. Profit margins remained broadly stable at 11.9% despite ongoing inflationary pressures.
Digital sales grew strongly, now representing 40% of total revenue, up from 37% last year, fuelled by demand for Click & Collect. Gross margin improved 60bps to 52.4%, reflecting tight cost control and favourable product mix.
Free cash flow stood at £127m, with net debt rising to £102m as the retailer invested in new stores, acquisitions and its Made-to-Measure blinds and shutters facility.
The retailer also extended its footprint, opening six new superstores – including its first inner London location – and acquiring Home Focus, a 13-store Irish chain. It also bought the brand and archive of Designers Guild.
-
Related Story
-
Chief executive Nick Wilkinson, delivering his final results before stepping down, said:“In my final set of results at Dunelm, I’m pleased to report another successful year, marked by growth in sales and profits, increased market share and meaningful strategic progress. Having had the privilege of being a part of this awesome business, I want to thank our incredible colleagues, whose commitment and adaptability has driven our performance this year and throughout our history.
“This has also been a year of milestones for our business; opening our 200th store and first inner London location, expanding Click & Collect, extending our UK Made-to-Measure manufacturing, entering our first market outside the UK, and buying the brand and archive of Designers Guild. All these investments are centred on creating a better offer and experience for our customers.
“As I move on, I leave behind a special business, with a strong business model, well positioned for the future. Dunelm is evolving as a multi-category and multi-channel specialist, The Home of Homes, making good progress towards its next market share milestone of 10%. With customers at our heart, and a commitment to long-term, sustainable growth, Dunelm is still just getting started.”
In his review, Wilkinson added that Dunelm had delivered growth by “helping more customers create the joy of truly feeling at home” despite a “lacklustre” consumer environment.
Looking ahead, Dunelm said it is encouraged by early trading in the new year but has yet to see signs of a sustained consumer recovery.
Plans for FY26 include launching a customer app, further store openings and continued investment in digital and operational productivity.
Click here to sign up to Retail Gazette‘s free daily email newsletter
