Dunelm Group Plc · LSE:DNLM
Dunelm — FY25 Earnings Presentation
34 slides from Dunelm's earnings presentation, Sep 9, 2025
Slide 1: Annual results FY25
Annual results FY25 9 September 2025
Slide 2: Annual results FY25 agenda
Annual results FY25 1 Introduction 2 Financial review 3 Building The Home of Homes 4 Q&A 2
Slide 3: Introduction
Introduction Nick Wilkinson CEO 3
Slide 4: Highlights
Highlights +3.8% 40% 7.9% +80bps FY24: 37% FY24: 7.7% Total sales Digital sales Active customers Market share2 growth participation1 growth3 52.4% £211m £127m 44.5p FY24: 51.8% FY24: £205m FY24: £132m FY24: 43.5p Profit before Free cash Ordinary dividend Gross margin tax flow4 per share 1. Digital i
Slide 5: Developing our business model: 'firsts' in FY25
Developing our business model: ‘firsts’ in FY25 1st store in 1st sales beyond 1st own manufacturing of inner London the UK M2M venetians & shutters Opening of Westfield White City Acquisition of 13 small stores in store in November 2024 brings Ireland builds new capabilities Investment in Cannock fa
Slide 6: Growing sustainably
Growing sustainably Reducing our impact on the Planet, engaging in our Communities, and ensuring our People feel at home Our home Our home in A home for the Planet Communities our People • 54% reduction in Scope 1 intensity emissions • >£1m in fundraising for our charity partner • 7pts improvement i
Slide 7: Financial review
Financial review Karen Witts CFO 7
Slide 8: Financial summary
Financial summary FY25 FY24 YoY Sales £1,771.0m £1,706.5m +3.8% Gross margin 52.4% 51.8% +60bps Net operating cost % sales1 39.9% 39.3% +60bps Profit before tax £211.0m £205.4m +2.7% PBT margin % 11.9% 12.0% (10bps) Diluted earnings per share 76.8p 74.4p +3.2% FY25 FY24 YoY Free cash flow2 £127.4m £
Slide 9: Sales, customers and market share growth
Sales, customers and market share growth Market share2 FY25 FY24 YoY +20bps vs FY24 Total sales £1,771.0m £1,706.5m +3.8% Digital % total sales1 40% 37% +3ppts Market share • Quality and balanced sales growth: • Higher volumes combined with increased average item value driven by product and category
Slide 10: Gross margin strength
Gross margin strength • Very strong gross margin of 52.4%, +60bps year-on-year • Ongoing execution of commercial and operational grip, prioritising our value proposition whilst maintaining tight cost control and optimising sourcing • Headline retail prices held broadly stable year-on-year • Particul
Slide 11: Cost grip in an inflationary environment
Cost grip in an inflationary environment £17m • Volume-driven costs +£18m £21m £2m £706m • Click & Collect expansion (£22m) • 2-person delivery driven by furniture £18m £670m • Inflation c.3% of the cost base, predominantly due to wage inflation C:S 38.0% • Ongoing investment to support strategic FY
Slide 12: Driving profitable growth
Driving profitable growth Broadly stable PBT margin over time • Strong track record of delivering sustainable P&L driver FY25 FY26 profit growth FX Broadly stable Moderate tailwind • The drivers of our costs vary in nature, impacted by growth and external factors Freight Broadly stable Small headwin
Slide 13: PBT, interest, tax and EPS
PBT, interest, tax and EPS FY25 FY24 Financial income and expenses (£11.0m) (£7.9m) Profit before tax £211.0m £205.4m PBT margin % 11.9% 12.0% Tax (£54.7m) (£54.2m) Effective tax rate 25.9% 26.4% Profit after tax £156.3m £151.2m Basic earnings per share 77.2p 74.7p Diluted earnings per share 76.8p 7
Slide 14: Strong cash generation
Strong cash generation FY25 FY24 • Operating cash flow of £256m up 10% Operating profit £222.0m £213.3m year-on-year, reflecting trading Depreciation & amortisation1 £83.4m £82.0m performance and neutral working capital Net movement in working capital (£0.5m) (£17.7m) Share-based payments expense £5
Slide 15: Capital investment
Capital investment • Capital investment of £67m in FY25, higher than long-term historic average Designers Guild • Increase due to £38m of strategic investments: Acquisition of brand and • Primarily driven by two London / South East design archive properties, to be converted to Dunelm stores • Also i
Slide 16: Track record of shareholder returns
Track record of shareholder returns Dividend history (pence per share) 100.0 • Final dividend declared of 28p 82.0 78.5 79.5 77.0 65.0 • Total ordinary dividend of 60.0 56.6 37.0 40.0 35.0 35.0 44.5p, up 2.3% year-on-year 32.0 31.5 26.0 26.5 • Ordinary dividend cover 1.73x 40.0 42.0 43.5 44.5 35.0 2
Slide 17: Guidance and outlook
Guidance and outlook Financial guidance • Total capex currently expected to be c.£50m, with 5 – 10 new superstores, at least one inner London store, c.10 refits • Working capital broadly neutral over the year, with timing benefit of c.£90m expected at the end of H1 • Effective tax rate 50 – 100bps a
Slide 18: Building The Home of Homes
Building The Home of Homes Nick Wilkinson CEO 18
Slide 19: Building The Home of Homes
Building The Home of Homes • Our ambition is to build the most trusted and valued brand for UK consumers in homewares & furniture • Focus areas bring compounding benefits, evolve our business model and bring a breadth of opportunity • Embracing consumer landscape and volatility, while raising the ba
Slide 20: Building scale in Furniture
1. Elevate our product offer Building scale in Furniture 1 2 3 • Furniture has been a strong contributor to growth over recent years, with significant further headroom Elsie Bobble Chenille • Upholstered chairs & sofas are a good example of Cocktail Chair progress, driven by improved product develop
Slide 21: Leveraging our specialism in Textiles
1. Elevate our product offer Leveraging our specialism in Textiles 1 2 3 • Our textiles heritage and scale give us the ability to innovate both ‘in’ and ‘across’ many home categories • Investing in raising the bar on product value across all of our key ranges, e.g. • Egyptian Cotton towels • Fogarty
Slide 22: Enhancing our digital customer experience
2. Connect with more customers Enhancing our digital customer experience 1 2 3 The runway of growth from digital optimisation continues… FY19 - FY22 FY23 – FY25 FY26 and beyond Catching up Scaling up Joining up FY22 digital sales1: c£540m FY25 digital sales1: c£700m Growth runway continues • New clo
Slide 23: Serving more communities; improving experience
2. Connect with more customers Serving more communities; improving experience 1 2 3 More London / South East Refits improve More new Superstores stores customer experience • London presence growing, with • 6 superstores opened including • Improved Click & Collect customer lots of opportunity smaller
Slide 24: Disciplined approach to operational efficiencies
3. Harnessing our operational capabilities Disciplined approach to operational efficiencies 1 2 3 • Focus on productivities alongside growth, with a strong track record of delivery • Ongoing focus on continuous improvement: • Leveraging performance marketing costs • Supply Chain initiatives includin
Slide 25: Delivery and ambition
Delivery and ambition More opportunity than ever • Across my tenure, the strengths of the Dunelm business model have been a constant Market share gains across our categories1 20% • Allowing us to invest in our offer and model, always adding Homewares 2024 quality as well as quantity Furniture 2019 1
Slide 26: Q&A
Q&A 26
Slide 27: Appendix
Appendix 27
Slide 28: Income statement
Income statement FY25 FY24 YoY Revenue £1,771.0m £1,706.5m £64.5m Cost of sales (£842.7m) (£823.2m) (£19.5m) Gross profit £928.3m £883.3m £45.0m Gross margin % 52.4% 51.8% +60bps Net operating costs (£706.3m) (£670.0m) (£36.3m) Operating profit £222.0m £213.3m £8.7m Net financial expenses (£11.0m) (
Slide 29: Balance sheet
Balance sheet FY25 FY24 28 June 2025 29 June 2024 Right-of-use assets £221.1m £222.9m Other non-current assets £222.2m £186.2m Inventories £226.3m £223.0m Cash £30.0m £23.4m Other current assets £41.9m £26.5m Total assets £741.5m £682.0m Lease liabilities (£247.5m) (£249.6m) Bank loans (£130.2m) (£7
Slide 30: Market share growth by category
Market share growth by category 20% Homewares 2024 Furniture 2019 10% 0% 1 Each bar represents a Dunelm homewares or furniture category which in total represent c.80% of total sales, mapped to GlobalData UK market sizes for the calendar year 2024 against 2019. Excludes certain Dunelm categories whic
Slide 31: 5-year financial summary
5-year financial summary FY21 FY22 FY23 FY24 FY25 (52 weeks) (53 weeks) (52 weeks) (52 weeks) (52 weeks) Total sales £1,336.2m £1,581.4m £1,638.8m £1,706.5m £1,771.0m Total sales growth 26.3% 18.4% 3.6% 4.1% 3.8% Gross margin % 51.6% 51.2% 50.1% 51.8% 52.4% Profit before tax £157.8m £212.8m £192.7m
Slide 32: 10-year dividend history
10-year dividend history FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Ordinary dividend per share Interim 6.0p 6.5p 7.0p 7.5p - 12.0p 14.0p 15.0p 16.0p 16.5p Final 19.1p 19.5p 19.5p 20.5p - 23.0p 26.0p 27.0p 27.5p 28.0p Total 25.1p 26.0p 26.5p 28.0p - 35.0p 40.0p 42.0p 43.5p 44.5p Special Divid
Slide 33: Investment proposition
Investment proposition Compelling runway to grow share of a large, A winning and advantaged fragmented addressable market business model: Growth Consistent track record of share gains over recent and long-term history Market leading brand Low share of a c.£24bn1 highly fragmented market Specialist p
Slide 34: Thank you
Thank you 34