**Dunelm Group plc Second Quarter and First Half Trading Update (January 15, 2026)**
**Summary**
Dunelm Group plc, the UKs leading homewares retailer, reported a solid first-half performance despite a challenging macroeconomic environment. Key highlights include
1. **Sales Performance**
**Q2 (13 weeks to 27 December 2025)** Total sales grew by 1.6% to £498m, with digital sales increasing to 42% of total sales (+2ppts YoY).
**H1** Total sales rose by 3.6% to £926m, driven by strong Q1 performance, though Q2 trading was softer due to competitive pressures and consumer caution, particularly around Black Friday and December.
2. **Gross Margin**
H1 gross margin improved by 60bps YoY, primarily due to favorable foreign exchange (FX) tailwinds.
3. **Profit Guidance**
H1 profit before tax (PBT) is expected to be approximately £112m - £114m.
Full-year FY26 PBT is now forecast to be at the lower end of consensus expectations (£214m - £227m, with an average of £222m).
4. **Category Performance**
Strong growth in core categories like bedding, towels, and lighting, with Made-to-Measure performing well.
Furniture sales were softer due to availability challenges, though recovery plans are in place.
5. **Strategic Initiatives**
Opened a second inner London store in Wandsworth and reopened the Yeovil store after a fire.
Launched the new Dunelm App on Apple and Android platforms, with a full customer launch planned for February.
Plans to open up to two additional Superstores in the second half.
6. **Outlook**
CEO Clo Moriarty emphasized the company’s focus on improving availability and enhancing the customer proposition to strengthen Dunelm’s market-leading position.
Despite ongoing retail challenges, Dunelm sees opportunities for growth and remains committed to its strategic plans.
**Next Event**
Interim results will be announced on February 10, 2026, with an in-person presentation, webcast, and conference call for analysts and investors.
**Key Metrics (H1 FY26 vs H1 FY25)**
Total sales£926.3m (+3.6% YoY)
Digital sales41% of total (+2ppts YoY)
Gross margin+60bps YoY
Dunelm remains focused on delivering value and innovation to customers while navigating a variable retail environment.