Home furnishings retailer Dunelm has reported a strong third quarter with sales growing to over £460m.
According to its latest trading update for the 13-week period ended 29 March 2025, total sales rose 6.3% to £462m year-on-year, while year-to-date sales were up 3.7% to £1.35bn.
Digital sales represented 41% in Q3, while gross margin is up 30bps year-on-year, with full-year guidance unchanged at 51.5% – 52%.
Dunelm said its sales and volume growth was broad-based across its categories, and saw a good start to its new Spring / Summer ranges, as well as a successful Winter Sale at the beginning of the period.
“Furniture categories again performed particularly well, as our extended ranges and bolder designs resonated with customers,” the retailer said. “Alongside this, we continued to grow our core textile-focussed categories, from pillows to rugs, reflecting the ongoing work we are doing to elevate our products, offering quality at all price points.
“Digital participation was up 4ppts year-on-year to 41%, as we have continued to optimise the online customer experience, with AI-powered search and recommendations improving relevance and conversion. Performance was also driven by strong Click & Collect sales, which again grew significantly in the quarter, benefiting from extended ranges and further optimisation of our fulfilment channels, with smaller items of furniture now available.”
In the quarter, Dunelm opened two new stores: a larger superstore in Merthyr Tydfil and a smaller superstore in Bracknell, and relocated its Peterborough superstore to an improved site after the period end.
The total estate now comprises 200 stores, with Dunelm continuing to seek out new opportunities as well as remaining on track with plans to open five new superstores in the full year (including one relocation).
Dunelm also completed a freehold acquisition in Kingston upon Thames, a key target area of ‘white space’, which “we expect to open as a Dunelm store in FY26”.
Looking ahead, Dunelm expects to pre-tax profit to be £208m, with a range of £204m to £214m, and is on track to achieve its milestone of 10% market share in the medium term.
Nick Wilkinson, Chief Executive Officer, commented: “We’ve had a good third quarter, with strong growth and further strategic progress. The Dunelm brand continues to attract a broad range of customers, offering outstanding value and quality, and we’re really pleased with how our new ranges are being received.
“We remain committed to driving market share gains through growth across all our channels. March saw the opening of Dunelm’s 200th store in Merthyr Tydfil, an exciting milestone, and we continue to see new opportunities, filling ‘white space’ in our physical estate through a variety of store formats. At the same time, we’re improving customers’ digital experience, including through Click & Collect, which has continued to gain momentum.
“Our customers are now enjoying getting their homes and gardens ready for summer and we’re focused on being as relevant as possible for the warmer months ahead. We remain very mindful of the wider backdrop and the impact of increased uncertainty on consumer sentiment, but maintain our focus on strengthening Dunelm’s position as The Home of Homes.”
