Dunelm Group (LON:DNLM – Get Free Report) posted its earnings results on Tuesday. The company reported GBX 42 earnings per share for the quarter, Digital Look Earnings reports. Dunelm Group had a return on equity of 96.64% and a net margin of 8.86%.
Here are the key takeaways from Dunelm Group’s conference call:
- Strong H1 cash and margin performance—sales up 3.6%, gross margin improved 60bps to 53.4%, headline free cash flow of £171m, and the board declared an interim dividend (17p) plus a special dividend (25p) and a small buyback, supporting shareholder returns.
- Operating costs pressured H1 profit—net operating costs rose £32m to £375m (volume, wage inflation and phasing of investments), which drove PBT to £114m (down £9m); management says costs should moderate in H2 but cost dynamics remain a near-term risk.
- Strategic customer push—new Chief Customer Officer appointed, app officially launching this month with high early engagement, and a targeted plan to improve personalization and lift share of wallet (current loyal customers represent two‑thirds of sales but only ~15% of their homewares spend).
- Operational issues identified and being fixed—furniture availability shortfall traced to forecasting inputs has been corrected (availability now >95%), and a packaging change cut one-person delivery complaints by ~20%, boosting CSAT and reducing cost of damages.
- Estate and capex stance—CapEx guidance reduced to ~£40m (from ~£50m) with slower store openings this year but a stronger FY27 pipeline and a continued target of ~5–10 openings annually as the group reappraises formats to expand reach.
Dunelm Group Stock Performance
LON DNLM opened at GBX 936.50 on Tuesday. The company has a fifty day simple moving average of GBX 1,058.25 and a 200 day simple moving average of GBX 1,113.67. Dunelm Group has a 12-month low of GBX 836.61 and a 12-month high of GBX 1,249. The company has a current ratio of 1.04, a quick ratio of 0.16 and a debt-to-equity ratio of 236.84. The company has a market cap of £1.90 billion, a P/E ratio of 12.19, a PEG ratio of -10.32 and a beta of 1.18.
Wall Street Analyst Weigh In
Check Out Our Latest Stock Report on DNLM
Insiders Place Their Bets
In other Dunelm Group news, insider Karen Witts acquired 10,790 shares of the company’s stock in a transaction on Monday, December 1st. The shares were purchased at an average cost of GBX 1,104 per share, with a total value of £119,121.60. Insiders own 34.15% of the company’s stock.
About Dunelm Group
Dunelm is the UK’s market leader in homewares with a purpose ‘to help create the joy of truly feeling at home, now and for generations to come’. Its specialist customer proposition offers value, quality, choice and style across an extensive range of c.70,000 products, spanning multiple homewares and furniture categories and including services such as Made to Measure window treatments.
The business was founded in 1979 by the Adderley family, beginning as a curtains stall on Leicester market before expanding its store footprint.
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