Retailer Posts Profit Growth as Dunelm Hits Major Expansion Milestones

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BHETA
September 9, 2025
4 min read
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Retailer Posts Profit Growth as Dunelm Hits Major Expansion Milestones

Dunelm has delivered another year of growth, marking key milestones such as entering the Irish market, expanding its store network and boosting digital sales.

The homewares giant said group sales for the 52 weeks ending 28 June 2025 climbed 3.8% to £1.77bn. Pre-tax profit rose more modestly, up 2.7% to £211m, with margins holding steady at 11.9% in the face of continued inflationary headwinds.

A strong digital performance underpinned results, with online sales now accounting for 40% of total revenue, compared with 37% a year earlier. The Click & Collect service proved particularly popular. Gross margin also strengthened by 60 basis points to 52.4%, aided by firm cost discipline and a favourable product mix.

The company’s footprint grew substantially over the year. It opened six additional superstores, including its first outlet in inner London, and crossed the symbolic threshold of 200 stores. In Ireland, Dunelm expanded through the acquisition of Home Focus, a 13-branch retailer, while also snapping up the Designers Guild brand and archive.

Before stepping down, Nick Wilkinson, Chief Executive has announced the final results commenting: “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.

“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.”

Dunelm expressed optimism about the start of the new financial year, though it noted that a full rebound in consumer spending has not yet materialised. For FY26, the retailer intends to roll out a dedicated customer app, add more stores to its estate, and press ahead with investments aimed at boosting digital capabilities and operational efficiency.

Open the Annual Results Presentation

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