Dunelm says it has made "good strategic progress" in an update on trading for the 13-week period ended 27th September 2025.
Dunelm's total sales for Q1 FY26 amounted to £428m, up 6.2% YoY, with digital (which includes home delivery, Click & Collect orders, and tablet-based sales in-store) making up 40% of the total, +3ppts YoY. Gross margin was up 80bps YoY, driven by FX tailwinds and continued operational grip. Growth was driven by both higher volumes and increased average item values.
The retailer's Home of Colour brand campaign is now live, and Dunelm's full-year outlook remains in line with the board's expectations.
As customers prepared their homes for the colder, darker months, Dunelm saw strong demand for warming textiles, with rugs and throws trading particularly well. Bedding, storage (including storage designed for compact living) and home hygiene ranges performed well, and there has also been appetite for soft accessories such as doorstops and draught excluders.
Dunelm's app is now available to customers via the Apple App Store, marking the beginning of "a new phase of digital development", says the retailer: "Over the course of the next FY and beyond, we will further develop the app’s functionality to drive more inspirational and cross-channel shopping experiences for our customers."
CEO Clo Moriarty comments: “After a few weeks immersing myself in the business, I’m delighted to see up close the qualities that attracted me to Dunelm – an inclusive culture, committed colleagues, and a genuine passion for the role we play in our customers’ lives.
“It’s a great time to be joining Dunelm. The business has delivered another strong performance in the first quarter, which reflects both the appeal of our customer offer and the strength of our business model. Building on this, I see real energy across the business – from the launch of our new app, to a vibrant brand campaign celebrating colour choices across our ranges – driving improvements to our proposition.
“These initiatives, and many more, show the potential we have to build even deeper connections with a broad and diverse customer base. With the reach of our national store footprint, a growing digital presence, and a growth mindset that brings together people and technology, I’m genuinely excited about what’s ahead.”
