Dunelm has announced another year of progress, with both sales and profits moving higher as the retailer grows its presence in the UK homewares and furniture markets.
For the 52 weeks to 28 June 2025, total sales increased by 3.8% to £1.77 billion, up from £1.70 billion the previous year. Pre-tax profit rose to £211 million, a gain of 2.7% on last year’s £205.4 million. Gross margin improved from 51.8% to 52.4%, while digital sales accounted for 40% of revenue, compared with 37% the year before.
The retailer confirmed that its market share across homewares and furniture climbed to 7.9% from 7.7%, supported by growth in active customer numbers and higher shopping frequency. Outdoor furniture categories performed particularly strongly in the second half of the year.
Furniture has been one of the driving forces behind Dunelm’s performance. The company has steadily expanded its capabilities in design and sourcing, with upholstered chairs and sofas more than doubling market share in the past five years within a £3 billion market. Popular products such as the Beatrice snuggle chair, offered in a range of fabrics and colours, have helped to cement its position. Dunelm is also trialling improved in-store presentation to build further momentum in this category.
Digital development remains a focus, with a new app due to launch later this year. This will provide personalised product content and smoother cross-channel experiences, such as stock checks in local stores and expanded product information.
Store expansion is continuing alongside digital growth. Dunelm will open a new location in Wandsworth in 2026 following the success of its Westfield White City store in London. Two additional freehold sites in London and the South East have been acquired, with plans for conversion into Dunelm stores. In the last financial year six new superstores opened, evenly split between large and small formats. Between five and ten more superstores are expected to open this year, most of which will be larger sites. The retailer currently operates from 202 stores across the UK and Ireland.
Chief Executive Officer Nick Wilkinson, in his final set of results for the business, highlighted the company’s ability to adapt to a changing retail climate while continuing to grow. He pointed to milestones such as the 200th store opening, the first inner London store, expanded Click & Collect, growth in Made-to-Measure manufacturing, the first overseas venture, and the acquisition of the Designers Guild brand and archive.
Wilkinson commented that Dunelm is well positioned for the future, describing it as a multi-channel and multi-category specialist that is steadily working towards its next market share goal of 10%.
