Home furnishings retailer Dunelm has reported a growth in first quarter sales.
According to its latest trading update for the 13-week period ended 27 September 2025, total sales rose 6.2% to £428m, with digital sales representing 40% – up by 3%.
Dunelm said its growth was driven by both higher volumes and increased average item values from product and category mix, as customers continued to respond well to its value proposition at all price points.
“As customers prepared their homes for the colder, darker months, we saw strong demand for warming textiles, with rugs and throws trading particularly well,” the retailer said. “As the Home of Homes, our extensive product range allows us to meet changing customer needs across the seasons.
“We delivered another strong gross margin, up 80bps year-on-year, primarily driven by the FX tailwind that we began to see at the end of the last financial year, whilst also benefitting from our usual operational grip.”
During the period, Dunelm also reached an important milestone in the development of its digital proposition, with the Dunelm app now available to customers via the Apple App Store, marking the beginning of a new phase of digital development.
“Over the course of the next financial year and beyond, we will further develop the app’s functionality to drive more inspirational and cross-channel shopping experiences for our customers,” the company added.
“We also launched our new ‘Home of Colour’ brand campaign in the period, showcasing the depth of our specialist offer, and giving customers the confidence to embrace cross-category coordination across their home, whatever their style preference.”
Looking ahead, Dunelm expects profits to be more heavily weighted towards the second half than last year, with FY26 PBT remaining in line with the Board’s expectations, while it is confident of delivering “further sustainable, profitable growth” as it moves towards its next milestone of 10% market share in the medium term.
Clo Moriarty, Chief Executive Officer, commented: “After a few weeks immersing myself in the business, I’m delighted to see up close the qualities that attracted me to Dunelm: an inclusive culture, committed colleagues, and a genuine passion for the role we play in our customers’ lives.
“It’s a great time to be joining Dunelm. The business has delivered another strong performance in the first quarter, which reflects both the appeal of our customer offer and the strength of our business model. Building on this, I see real energy across the business – from the launch of our new app, to a vibrant brand campaign celebrating colour choices across our ranges – driving improvements to our proposition.
“These initiatives, and many more, show the potential we have to build even deeper connections with a broad and diverse customer base. With the reach of our national store footprint, a growing digital presence, and a growth mindset that brings together people and technology, I’m genuinely excited about what’s ahead.”
