Dunelm Shares Jump on Strong Q3 Sales

Shares of Dunelm (LON: DNLM) jumped on Thursday after the homewares retailer posted strong third-quarter results and reaffirmed its full-year profit outlook.

The stock, at the time of writing, is back above the 1,000p mark, its highest level since February 27, 2025.

Dunelm’s total sales for the 13 weeks to 29 March rose 6.3% year-on-year to £462 million, driven by growth across homewares and furniture categories. 

Digital participation increased to 41% of total sales, up four percentage points from a year earlier, as the company continued to enhance its online shopping experience.

Gross margin improved by 30 basis points, and full-year guidance was maintained at 51.5% to 52%. 

Dunelm said it remains on track to deliver full-year pre-tax profit in line with the consensus estimate of £208 million, with a range of £204m to £214m.

Meanwhile, Dunelm said furniture sales performed particularly well, and core textile categories, such as rugs and pillows, also showed strong demand. 

CEO Nick Wilkinson said the results reflect the group’s focus on value and product elevation. “We’re really pleased with how our new ranges are being received,” he said.

The company marked the opening of its 200th store during the quarter and completed a key freehold acquisition in Kingston upon Thames, with five new store openings planned for the full year.

Despite positive trading momentum, Dunelm noted continued macroeconomic uncertainty and labour cost headwinds. However, management remains confident in achieving its medium-term goal of a 10% market share.