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Dunelm Group PLC on Thursday reported a rise in first-quarter sales, but the homewares retailer said it is grappling with an ‘uncertain consumer environment’. The Leicestershire, England-based company said total sales in the first quarter to September 27 rose 6.2% on-year to £428 million. Digital sales accounted for 40% of that total. ‘Our growth was driven by both higher volumes and increased average item values from product and category mix, as customers continued to respond well to our value proposition at all price points.’ Dunelm said. ‘We delivered broad-based growth across our categories, reflecting the continued relevance of our wide-ranging offer. As customers prepared their homes for the colder, darker months, we saw strong demand for warming textiles, with rugs and throws trading particularly well. As the home of homes, our extensive product range allows us to meet changing customer needs across the seasons.’ Dunelm said its gross margin rose 80 basis points on-year, helped by foreign exchange ‘tailwinds’. It added: ‘We are pleased with our performance in the first quarter, in an ongoing uncertain consumer environment. We delivered broad-based sales growth across our categories and channels, and a strong gross margin. We continue to make good progress against our strategic priorities and invest for future growth. The timing of investments, alongside the inflationary impacts we currently face, is such that we currently expect profits to be more heavily weighted towards the second half than last year.’ Dunelm expects pretax profit in financial 2026 to be in line with board expectations. Dunelm shares were 1.7% lower at 1,129.00 pence each in London on Thursday morning. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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