Dunelm income slip after difficult December however new boss eyes progress

Dunelm saw its profits fall in the run-up to Christmas amid a ‘challenging’ environment. 

Sales increased 3.6 per cent in the 26 weeks to 27 December with steady demand for products like bedding and cushions, but a softer second quarter offset gains. 

The retailer’s pre-tax profit fell 7.5 per cent to £114million, while diluted earnings per share slipped to 41.7p, down from 45p a year ago.  

Revenue came in at £926.3million for the period, up 3.6 per cent year-on-year, with digital sales rising to 41 per cent of the total. 

Winter sales freeze: Dunelm reported a softer run-up to Christmas 

Chief executive Clo Moriarty, who took on the top job in October 2025, said trading had strengthened in its third quarter following a ‘good Winter Sale’ and an encouraging response to new Spring ranges.

However, its furniture sales, which Moriarty said had been a ‘tailwind’, were softer. 

It pointed to a weaker consumer confidence and a challenging December for retailers more generally. However, Dunelm said ‘the forecasting and ordering of a small number of key product lines did not match up to customer demand’. 

dIt said the consumer environment remained ‘challenging, with variable trading patterns’.

Dunelm added that it expects its annual pre-tax profit to be in line with forecasts and will publish its third quarter trading update on 16 April. 

Moriarty said: ‘What I’ve seen so far gives me real confidence in our future. With only 7.9 per cent market share and clear opportunities to enhance and expand our assets, we have significant headroom for growth. 

‘We will build on our existing strengths with relentless customer focus, product excellence and retail rigour, underpinned by the financial discipline for which Dunelm is known. There is much more in the tank, and I’m excited for what lies ahead.’

This week, Dunelm bolstered its executive team with two new hires to support the next phase of its growth.

Laura Harricks has been appointed chief customer officer and will join the company in early March. She was previously CCO at Ocado Retail and also worked at Monsoon Accessorize and Currys. Caroline Angell has also joined Dunelm as chief people officer  with immediate effect.

Dunelm shares rose 1.12 per cent or 10.50p to 947.50p, having slipped around 2 per cent in the past year.  

Earlier this week analysts at Jefferies upgraded Dunelm to ‘buy’ from ‘hold’ as it said the recent de-rating was overdone.