**Summary of Dunelm Group PLC Interim Results for H1 FY26 (26 weeks ended 27 December 2025)**
**Financial Performance**
**Total sales** grew by 3.6% to ยฃ926.3 million (H1 FY25: ยฃ893.7 million), outpacing the combined homewares and furniture market.
**Digital sales** increased to 41% of total sales (H1 FY25: 39%), driven by higher online participation.
**Gross margin** improved by 60 basis points to 53.4%, primarily due to FX gains and stable retail pricing.
**Profit before tax (PBT)** declined by 7.5% to ยฃ114.0 million (H1 FY25: ยฃ123.2 million), reflecting softer trading in Q2 and cost timing.
**Diluted earnings per share** decreased by 7.3% to 41.7p (H1 FY25: 45.0p).
**Free cash flow** rose to ยฃ171.4 million (H1 FY25: ยฃ168.5 million), supported by a ยฃ93 million timing benefit.
**Net cash** decreased to ยฃ13.3 million (H1 FY25: ยฃ57.1 million) due to dividend payments and working capital movements.
**Dividends**
**Interim ordinary dividend** increased by 3.0% to 17.0p per share (H1 FY25: 16.5p).
**Special dividend** declared at 25.0p per share (H1 FY25: 35.0p), reflecting confidence in future prospects.
**Operational Highlights**
**Market share** grew by 20 basis points to 7.9%, despite a challenging consumer environment.
**Furniture availability** issues impacted Q2, with recovery plans in place.
**App launch** planned for spring 2026 to enhance digital engagement.
**Strategic Focus**
**Customer-centric approach** Aiming to strengthen brand proposition and loyalty, with a focus on product excellence and retail rigour.
**Digital and physical growth** Expanding store footprint and enhancing digital capabilities, including social commerce and SEO.
**Operational efficiency** Investing in technology, people, and processes to drive future growth.
**Outlook**
**Q3 trading** showed stronger sales growth, aligning with H1 performance.
**FY26 PBT** expected to meet consensus expectations of ยฃ214 million.
**Consumer environment** remains challenging, but Dunelm is confident in its plans and growth opportunities.
**CEO Commentary (Clo Moriarty)**
Highlighted Dunelmโs strong branduniversal appealand growth potentialwith only 7.9% market share.
Emphasized focus on customer experience, product innovation, and operational excellence to drive future growth.
**Conclusion**
Dunelm delivered a resilient H1 performance despite market challenges, with strategic initiatives in place to capitalize on growth opportunities and enhance shareholder value.
Hereโs the HTML table code comparing the financials and debt year on year for Dunelm Group PLC based on the provided text:
### Explanation:
- **Total Sales**: Increased by 3.6% from ยฃ893.7m in H1 FY25 to ยฃ926.3m in H1 FY26.
- **Digital % of Total Sales**: Increased by 2 percentage points from 39% to 41%.
- **Gross Margin**: Improved by 60 basis points from 52.8% to 53.4%.
- **Net Operating Costs:Sales Ratio**: Increased by 210 basis points from 38.4% to 40.5%.
- **Profit Before Tax (PBT)**: Decreased by 7.5% from ยฃ123.2m to ยฃ114.0m.
- **Diluted Earnings per Share**: Decreased by 7.3% from 45.0p to 41.7p.
- **Free Cash Flow**: Increased by ยฃ2.9m from ยฃ168.5m to ยฃ171.4m.
- **Net Cash**: Decreased by ยฃ43.8m from ยฃ57.1m to ยฃ13.3m.
- **Ordinary Dividend per Share**: Increased by 3.0% from 16.5p to 17.0p.
- **Special Dividend per Share**: Decreased from 35.0p to 25.0p (n/a indicates not applicable for direct comparison due to the nature of special dividends). This table provides a clear year-on-year comparison of key financial metrics and debt for Dunelm Group PLC.