Source: Sharecast
In the 13 weeks to 27 June, sales ticked up 2.9% on the year to £428m, with digital participation up three percentage points to 45%. The homeware retailer said its Summer Living category traded particularly strongly, both at full price and on promotion, with good sell-through across the range.
It also said growth was achieved despite trading being hit by two separate weeks of exceptionally warm weather, during which there were lower levels of store footfall.
Full-year sales were 3.1% higher at £1.8bn and Dunelm said FY26 pre-tax profit was on track to meet previous guidance and consensus of £210m.
Gross margin is expected to end the year at 52.5%, up 10 basis points on the year. "This reflects our ongoing discipline and the continued benefit from an FX tailwind, partly offset by customers increasingly participating in our promotional events, especially in the second half of the financial year," the company said.
Cash generation was again strong in FY26, it said, with around 70% of operating profit converted to free cash.
Chief executive Clo Moriarty said: "We have delivered a solid performance both in the quarter and across the year. There is, however, much more we must do to build on our core strengths and realise our untapped potential.
"From expanding and improving our store estate to continuing to innovate digitally, we're beginning to demonstrate what a bigger, better and bolder Dunelm can look like. As the market leader in a large and highly fragmented market, we believe our best growth opportunities are still in front of us.
"There's hard work ahead but I'm confident in the plans that we have been developing over the past nine months and excited by what comes next. We look forward to sharing more in September."
At 0813 BST, the shares were up 3.9% at 848.93p.
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