**Dunelm Group plc First Quarter Trading Statement Summary (Q1 FY26)**
**Key Highlights**
**Strong Sales Growth** Total sales increased by 6.2% year-on-year to £428 million, driven by higher volumes and increased average item values across all price points.
**Digital Performance** Digital sales grew to 40% of total sales, up 3 percentage points YoY, supported by the launch of the Dunelm app and enhanced online offerings.
**Gross Margin Improvement** Gross margin rose by 80 basis points YoY, attributed to favorable FX tailwinds and operational efficiency.
**Strategic Progress** Successful launch of the Dunelm app and the Home of Colour brand campaign, broadening appeal to younger audiences and enhancing customer engagement.
**Full-Year Outlook** In line with Board expectations, with profits expected to be more weighted towards the second half due to investment timing and inflationary impacts.
**Performance Drivers**
Broad-based growth across categories, particularly in warming textiles like rugs and throws, reflecting seasonal demand.
Strong response to the student campaign, driving 40% YoY growth and expanding Dunelm’s customer base.
**Strategic Initiatives**
Development of the Dunelm app to enhance cross-channel shopping experiences.
Home of Colour campaign highlighting Dunelm’s extensive product range and cross-category coordination.
**CEO Commentary (Clo Moriarty)**
Moriarty praised Dunelm’s inclusive culture, committed team, and strong business model, expressing excitement about future growth opportunities, including digital expansion and deeper customer connections.
**Outlook**
Dunelm remains confident in delivering sustainable, profitable growth, targeting 10% market share in the medium term, despite ongoing consumer uncertainty.
**Next Update**
Second quarter trading update scheduled for 15 January 2026.