Dunelm Group PLC (LSE:DNLM) reported first-quarter sales of £433 million, a 1.1% increase, as trading conditions improved significantly across the period.
The homewares retailer faced a difficult opening to the quarter, with sales falling around 3% year on year during the first six weeks as unusually warm weather dampened consumer demand for its product range.
Trading swung sharply into positive territory over the final seven weeks, with sales growing approximately 4% year on year as weather conditions normalised and shopper appetite recovered.
Store-enabled like-for-like sales declined 0.8% over the full quarter, reflecting the challenging start to the period before conditions improved later on.
Digital sales continued to grow as a proportion of total revenue, increasing their share by one percentage point to reach 41% of the business overall.
Gross margin edged higher by 10 basis points year on year, supported by favourable currency movements that helped offset broader cost pressures facing the retail sector.
The Made to Measure category delivered double-digit growth during the quarter, while the Cook and Dine range also performed strongly as shoppers continued to invest in their homes.
Dunelm said it continued to make progress under its three-year Winning Hearts and Homes strategy, which includes product range trials, store renewals, and a rollout of radio-frequency identification technology to improve stock availability and store efficiency.
Two new stores are expected to open in the first half of the financial year, with five existing locations already renewed and a larger refurbishment project underway at the Doncaster store.
The company maintained its full-year profit guidance, expecting adjusted pre-tax profit in 2026/27 to be broadly in line with the prior year, though first-half profit is expected to come in lower as growth initiatives remain more heavily weighted towards the second half.
The results offer reassurance to investors that Dunelm retains momentum despite the uncertain consumer environment, with the stronger close to the first quarter suggesting underlying demand for homewares remains resilient.
