Home furnishings retailer Dunelm has reported a growth in sales and profit.

According to its preliminary results for the 52 weeks to 28 June 2025, total sales rose 3.8% to £1.77bn from £1.70bn in 2024.

Digital sales represented 40% of revenues, growing from 37%, while gross margin improved from 51.8% to 52.4%.

Pre-tax profit resulted at £211m, up 2.7% from £205.4m recorded the previous year.

Dunelm said that it has increased market share of the combined homewares and furniture markets to 7.9%6 (up from 7.7%) during the year, while active customers also rose alongside higher frequency.

“The combined homewares and furniture market grew slightly in the year, having declined since FY22, with the second half benefiting from stronger growth in outdoor furniture categories,” Dunelm said.

“We again increased our market share, up 20bps during the year to 7.9%, and as ever we see headroom for further share gains as we progress towards our next milestone of 10% share in the medium term.

“Our furniture offer has been a strong contributor to our growth for several years, benefiting from building capabilities in product design and sourcing. There is no better example of this than upholstered chairs and sofas, where in the last five years we have more than doubled our market share in a £3bn addressable market, with significantly more opportunity ahead.

“We now have a well-curated range of best-sellers, including our popular Beatrice snuggle chairs, available in a variety of colourways and materials, at very competitive prices.”

Dunelm added that it is currently testing an “improved furniture presentation” in store, as it sees “plenty of headroom” for further growth in this category.

On the digital front, Dunelm is progressing with the launch of its new app, which is set to go live later this year. “We deliberately chose not to launch an app until our data and digital capabilities were sufficiently developed,” the retailer said. “With those foundations now in place, we will have the ability to offer relevant, personalised and inspirational product content to our customers, without the significant costs that come with generating website traffic to dunelm.com.

“In time, the app will also allow us to develop better cross-channel experiences, making it easier to check stock availability in your local store and access more product information.”

On physical stores, Dunelm plans to open a new store in Wandsworth during FY26 following the success of its first inner London 5,000sqft store at Westfield White City. Dunelm has also acquired two freehold properties in London and the South East, which will be converted to Dunelm stores in the future. “These developments are meaningful steps to connect us to more customers in this part of the country,” the retailer said.

“In FY25 we opened six superstores, split evenly between larger and smaller stores. We expect to open 5 – 10 new superstores this year, the majority of which will be larger stores.”

Dunelm currently operates from 202 stores across the UK and Ireland.

Nick Wilkinson, Chief Executive Officer, commented: “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.

“We’ve learned to navigate a volatile consumer environment, raising the bar on what really matters to our customers – delivering amazing value and helping them to create stylish, joyful and hard-working homes. With a thriving digital offer, vibrant stores, and a broadening category offer, we’re finding new and meaningful ways to be relevant in our customers’ lives.

“This has also been a year of milestones for our business; opening our 200th store and first inner London location, expanding Click & Collect, extending our UK Made-to-Measure manufacturing, entering our first market outside the UK, and buying the brand and archive of Designers Guild. All these investments are centred on creating a better offer and experience for our customers.

“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.”