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Dunelm Group PLC on Tuesday reported a mixed first half but said full-year profit remains on track as it reiterated guidance for financial 2026 pretax profit, set to be in line with market expectations. The Syston, Leicestershire-based homewares retailer posted sales for the 26 weeks to December 27 of £926.3 million, up 3.6% from £893.7 million a year prior. Pretax profit declined 7.5% to £114.0 million from £123.2 million due to softer trading in the second quarter and the timing of certain costs. Cost of sales increased 2.3% to £431.6 million from £421.8 million, while operating costs were 9.6% higher, at £378.1 million from £344.9 million. Dunelm said sales growth in the early weeks of the third quarter has improved and is now more in line with the first half overall. The company declared an interim dividend of 17.0 pence, up 3.0% from 16.5p, and a special dividend of 25.0p, down 29% from 35.0p a year prior. Digital participation rose to 41% from 39%. Dunelm said Q3 trading so far has strengthened after the weaker Q2, but it continues to see a challenging consumer backdrop with variable patterns. The company maintains that FY26 pretax profit will meet consensus expectations, supported by planned initiatives including the full launch of its new app in the spring. Looking ahead, Dunelm expects pretax profit in the financial year ending June 27 to be in line with current consensus expectations of £214 million, with a range of £210 million to £221 million. It would be similar to a pretax profit of £211.0 million in financial 2025. Chief Executive Officer Clo Moriarty said: ‘We delivered a solid firsthalf performance despite a softer second quarter, and we are seeing stronger sales growth in early Q3 following a good winter sale and an encouraging response to our new Spring ranges. What I’ve seen so far gives me real confidence in our future. With only 7.9% market share and clear opportunities to enhance and expand our assets, we have significant headroom for growth.’ Dunelm shares fell 1.1% to 927.00 pence each on Tuesday morning in London. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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