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Dunelm Grows Sales and Margins but Flags Profit at Lower End of Forecasts

Story Highlights
  • Dunelm grew Q3 sales and margins as digital rose and value-focused shoppers supported 3.1% year-to-date growth.
  • Amid softer March trading, Dunelm sees FY26 profit at low end of expectations but pushes ahead with app and store expansion.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Dunelm Grows Sales and Margins but Flags Profit at Lower End of Forecasts

Meet Samuel – Your Personal Investing Prophet

Dunelm Group ( (GB:DNLM) ) has issued an announcement.

Dunelm reported third-quarter sales of £472m, up 2.1% year on year, with digital channels rising to 43% of revenue and helping to lift year-to-date sales 3.1% to £1,398m. Gross margin improved by 30 basis points as the retailer balanced foreign exchange tailwinds with increased demand for discounted products, reflecting consumers’ search for value in a tougher spending environment.

Management highlighted that trading softened towards the end of the quarter amid heightened global uncertainty, and the group now expects full-year profit before tax to land toward the lower end of market forecasts. Even so, Dunelm is pressing ahead with growth initiatives, including the full launch of its mobile app, which has passed 300,000 downloads, and a strengthened UK store-opening pipeline, moves that reinforce its long-term omnichannel strategy despite near-term earnings pressure.

The most recent analyst rating on (GB:DNLM) stock is a Buy with a £1200.00 price target. To see the full list of analyst forecasts on Dunelm Group stock, see the GB:DNLM Stock Forecast page.

Spark’s Take on DNLM Stock

According to Spark, TipRanks’ AI Analyst, DNLM is a Neutral.

The score is driven primarily by solid underlying financial performance and a constructive earnings outlook (consensus-aligned PBT guidance and lower CapEx) alongside attractive valuation (low P/E and high yield). These positives are offset by weak technical momentum (price below key moving averages, negative MACD) and financial risk flags from leverage and declining free cash flow growth.

To see Spark’s full report on DNLM stock, click here.

More about Dunelm Group

Dunelm Group is the UK’s market-leading homewares retailer, offering more than 100,000 products across categories including textiles, furniture, kitchenware, lighting, outdoor and DIY, with a strong focus on own-brand value and quality. Founded in 1979 as a market stall in Leicester, it now operates over 200 stores in the UK and Ireland alongside a significant online business, including home delivery, Click & Collect and in‑store Pausa coffee shops.

Headquartered in Leicester and listed on the London Stock Exchange since 2006, Dunelm employs around 12,500 people and positions itself as “The Home of Homes,” targeting mass‑market home lovers seeking style at accessible prices. Its omnichannel model and long-term supplier relationships underpin its leadership in the UK homewares market and support both store-led and digital growth.

Average Trading Volume: 587,645

Technical Sentiment Signal: Hold

Current Market Cap: £1.71B

For an in-depth examination of DNLM stock, go to TipRanks’ Overview page.

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