Published by Global Banking & Finance Review®
Posted on February 10, 2026
2 min readLast updated: February 10, 2026
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Dunelm reported stronger Q3 sales following a 7.5% drop in half-year profit, attributed to strong winter sales despite earlier weak demand.
Feb 10 (Reuters) - Britain's Dunelm flagged stronger sales growth in early third quarter on good winter sales and positive responses to its new spring ranges after the homeware retailer reported a 7.5% drop in half-yearly profit on Tuesday.
Shares in the Leicester-headquartered company rose 2.9%.
The company, which sells bedding, furniture, and other homeware, has been facing a tough demand environment as persisting cost‑of‑living pressures curb spending. The firm is pushing ahead with plans to open new stores and introduce new ranges in a bid to attract customers.
Dunelm expects annual pretax profit to be in line with market expectations after warning last month that earnings would come in at the lower end of analyst estimates.
Analysts, on average, expect pretax profit of 214 million pounds ($292.56 million) for fiscal 2026, according to a company-compiled consensus. That compares with 211 million pounds in fiscal 2025.
For the first half of fiscal 2026 ended December 27, the company reported a pretax profit of 114 million pounds, compared with 123.2 million pounds a year earlier, as sales slowed in the second quarter due to weak demand.
($1 = 0.7315 pounds)
(Reporting by Nithyashree R B in Bengaluru; Editing by Subhranshu Sahu and Mrigank Dhaniwala)
Pretax profit is the income earned by a company before tax expenses are deducted. It reflects the company's profitability from its operations.
Sales growth refers to the increase in sales revenue over a specific period, indicating a company's ability to expand its market presence.
Half-yearly profit is the total profit a company earns over a six-month period, providing insights into its financial performance during that time.
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