Dunelm sales cushioned by strong furniture demand

Dunelm Group sales enjoyed a solid start to 2025, buoyed by demand for furniture and its seasonal ranges, and despite a uncertain consumer environment.

The homewares firm's turnover increased by 6.3 per cent to £462million in the 13 weeks ending 29 March, meaning its total revenue has risen by 3.7 per cent to around £1.4billion so far this financial year.

The share of digital orders grew by four percentage points to 41 per cent in the third quarter, which the company partially credited to extended ranges and the availability of smaller furniture products driving click-and-collect sales.

It noted that furniture categories sold 'particularly well,' while textile-focused products like pillows and rugs were also popular.

Dunelm additionally said it enjoyed a bumper winter sale followed by a 'good start' for its spring/summer ranges as warm weather boosted purchases of garden items.

Following the result, the Leicestershire-based business expects its annual pre-tax profits to align with consensus forecasts of £204million to £214million.

Dunelm Group shares jumped 6.2 per cent to £10.07 on Thursday morning, making them the FTSE 250 Index's best-performing stock.

Nick Wilkinson, chief executive of Dunelm, said: '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.'

But he warned that the company was 'very mindful of the wider backdrop and the impact of increased uncertainty on consumer sentiment.'

Wilkinson announced in February that he would be standing down as CEO later this year following seven years in charge. A successor has not yet been announced.

During his tenure, Dunelm's annual turnover has leapt by over half thanks to greater online trade, store expansion, and lockdown restrictions in 2020 and 2021 spurring a home renovation boom among Britons.

Sales have continued rising since Covid-related curbs ended, growing by 4.1 per cent to £1.7billion last year, thanks partly to elevated demand among young shoppers and increased purchases of kitchen products and upholstered furniture.

Russ Mould, investment director at AJ Bell, said: 'With retail, it is really important to get the basics right and with its new ranges, Dunelm is stocking products which people want at a price they're willing to pay.

'A continued store roll-out and improvements to its digital offering are also helping.

'For now, this seems to be cushioning Dunelm from the impact of escalating macro-economic uncertainty, which could be an obstacle to households loosening the purse strings.'