**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 £926.3 million (H1 FY25: £893.7 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 £114.0 million (H1 FY25: £123.2 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 £171.4 million (H1 FY25: £168.5 million), supported by a £93 million timing benefit.
**Net cash** decreased to £13.3 million (H1 FY25: £57.1 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 £214 million.
**Consumer environment** remains challenging, but Dunelm is confident in its plans and growth opportunities.
**CEO Commentary (Clo Moriarty)**
Highlighted Dunelm’s 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.