Dunelm Group Plc · LSE:DNLM
Dunelm — H1 FY26 Earnings Presentation
34 slides from Dunelm's earnings presentation, Feb 10, 2026
Slide 1: Interim Results FY26
Interim Results FY26 10 February 2026
Slide 2: First impressions of a special business
First impressions of a special business …partnering with Product-centric …harnessing the …with an …and amazing long-standing, with something for power of bricks and expanding digital colleagues who committed everyone… mortar… platform… really care suppliers… 2
Slide 3: Interim Results FY26
Interim Results FY26 1 Introduction 2 Financial Review 3 Building on our strengths 4 Q&A
Slide 4: H1 FY26 Performance
H1 FY26 Performance +3.6% +60bps 7.9% +2.6%pts FY25 H1: 7.7% Total Sales Gross Margin Customer Market Share1 Growth Growth Satisfaction2 £114m £171m 17.0p 25.0p FY25 H1: £123m FY25 H1: £169m FY25 H1: 16.5p FY25 H1: 35.0p Profit Before Free Cash Interim Div. Special Div. Tax Flow3 per Share per Share
Slide 5: Further growth in market share
Further growth in market share Rolling 12-month sales Sales growth by quarter 4.1% 3.8% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan FY25 FY26 Q1 Q2 Q3 Q4 FY GfK Homewares GfK Furniture Dunelm FY24 FY25 FY26 Continued sales growth ahead of the market1 …but with typical
Slide 6: Softer than anticipated Q2 trading
Softer than anticipated Q2 trading GfK consumer confidence 0 -5 -10 -15 -20 -25 Jan-24 Jan-25 Jul-24 Jul-25 Nov-24 Nov-25 Jan-26 Mar-24 May-24 Mar-25 May-25 Sep-24 Sep-25 Highly competitive performance Softer trading in furniture, impacted Consumer confidence remains marketing and discounting during
Slide 7: Confidence in our H2 trading plans
Confidence in our H2 trading plans Q3 trading to date more in line with Positive response to new SS26 Full customer launch of Dunelm app H1 as a whole ranges in February 2026 7
Slide 8: Financial Review
Financial Review Karen Witts CFO
Slide 9: Financial Summary
Financial Summary H1 FY26 H1 FY25 YoY Sales £926.3m £893.7m +3.6% Gross margin 53.4% 52.8% +60 bps Net operating cost % sales1 40.5% 38.4% +210 bps Profit before tax £114.0m £123.2m (7.5%) PBT margin % 12.3% 13.8% (150 bps) Diluted earnings per share 41.7p 45.0p (7.3%) H1 FY26 H1 FY25 YoY Free cash
Slide 10: Sales & Gross Margin
Sales & Gross Margin • Overall solid first half sales growth of +3.6%, in a challenging environment • Digital participation up 2ppts to 41% • Growth again driven by core categories; from our heritage in soft textiles to newer areas of specialism such as lighting • Volumes broadly stable, with growth
Slide 11: Net Operating Costs
Net Operating Costs • Volume costs linked to channel £9m £7m sales added £11m; principally distribution and performance £11m (£6m) marketing £11m • Inflation >3% of total cost base, driven by NLW and NIC increases £375m • Investment in prior year new stores £343m (including Ireland) • Productivity g
Slide 12: Net Operating Costs: H1 → H2
Net Operating Costs: H1 → H2 H1: net operating costs +9% YoY H2: YoY growth moderating due to inflation & timing £375m £375m £363m £343m £343m Volume Investment Other Volume Investment Other FY25 H1 Inflation Productivities FY26 H1 FY25 H2 Inflation Productivities FY26 H2 & efficiencies & efficienci
Slide 13: PBT, Interest, EPS, Tax
PBT, Interest, EPS, Tax H1 FY26 H1 FY25 Financial income and expenses (£5.9m) (£5.4m) Profit before tax £114.0m £123.2m PBT margin % 12.3% 13.8% Tax (£29.2m) (£31.6m) Effective tax rate 25.6% 25.6% Profit after tax £84.8m £91.6m Basic earnings per share 42.0p 45.2p Diluted earnings per share 41.7p 4
Slide 14: Cash and Net Debt
Cash and Net Debt H1 FY26 H1 FY25 • Free cash flow £171m (FY25 H1 Operating profit £119.9m £128.6m £169m) Depreciation & amortisation1 £40.2m £40.9m Working capital inflow £91.0m £93.6m • £93m timing benefit (FY25 H1 Share-based payments expense £4.8m £1.5m £88m) reversed on second working Tax paid
Slide 15: Dividends
Dividends Dividend history (pence per share) • Capital allocation prioritises 100.0 investment in the business, with excess cash returned to 82.0 77.0 78.5 79.5 shareholders 60.0 65.0 56.6 37.0 40.0 35.0 35.0 • Interim dividend of 17.0p, up 3.0% 31.5 32.0 year-on-year 26.0 26.5 35.0 40.0 42.0 43.5 4
Slide 16: Outlook and Guidance
Outlook and Guidance • Confident in our plans for H2 • FY26 PBT expected to be in line with current consensus expectations1 • Full-year effective tax rate 50 – 100bps above the headline rate • Working capital broadly neutral for the year • Capex for the year now expected to be c.£40m • Below previou
Slide 17: Building on our strengths
Building on our strengths Clo Moriarty CEO
Slide 18: First impressions of a special business
First impressions of a special business …partnering with • Product-centric …harnessing the …with an …and amazing long-standing, with something power of bricks and expanding digital colleagues who committed for everyone… mortar… platform… really care suppliers… 18
Slide 19: We have universal appeal
We have universal appeal Dunelm BrandVue metrics1 Market leader by key buying factor c.90% c.40% Awareness Consideration We have high awareness with #1 across many key buying Our customers represent the UK headroom to improve criteria but mixed by criteria / population consideration categories2 Oppo
Slide 20: We have deeply loyal customers
We have deeply loyal customers Most loyal customers2 Most loyal customers - Homewares spend3 ~2/3 15% ~1/3 % Customers % Sales Dunelm share of wallet Remaining share We have a large and growing Our most loyal customers We only capture 15% of our customer base1 contribute significantly to our most lo
Slide 21: We have outstanding product choice
We have outstanding product choice % Sales SKU Sales Participation % Dunelm brand Dunelm owned brands Other % of SKUs % of Sales The Dunelm product brand The vast majority of our sales are We have a broad offer, expanded plays a major role in driven by around half of our to more than 100k SKUs custo
Slide 22: We have physical & digital reach
We have physical & digital reach Existing Priority A Priority B 60% of the population is within a Digital journeys benchmark well Customers love our stores but 15-minute drive of our stores1; but opportunities exist in social sales are not growing fast enough headroom for many more commerce and GEO
Slide 23: We have strong customer satisfaction
We have strong customer satisfaction Customer Satisfaction (CSAT)1 HD - 2P C&C Store walk-in HD - 1P Channel Total Variability by fulfilment channel Clear areas of focus to improve Our CSAT is strong and growing offers headroom for improvement end-to-end customer experience Driving repeat purchases
Slide 24: We have great colleagues and solid platforms
We have great colleagues and solid platforms We have 12,500 dedicated and We have invested in our data But the job is not done yet, on passionate colleagues and technology platforms either Opportunity Building capabilities to be future fit: people, process and systems 24
Slide 25: Each of our strengths presents an even bigger opportunity
Each of our strengths presents an even bigger opportunity We will… Drive repeat purchases through Maximise our appeal through Strong better customer experiences a clearer brand proposition customer Universal satisfaction appeal Great Build capabilities to be colleagues & We have… Loyal Engage & deli
Slide 26: The core UK opportunity remains compelling
The core UK opportunity remains compelling We have strong foundations… We are the market leader …but with only 7.9% market share1 We have so many assets: customer, brand, …each of which presents further headroom to product and channel capture growth We have a proven track record of financial …with e
Slide 27: Cie
SE — Fs oO: Cie =| = Al?
Slide 28: Appendix
Appendix
Slide 29: Income statement
Income statement H1 FY26 H1 FY25 YoY Revenue £926.3m £893.7m £32.6m Cost of sales (£431.6m) (£421.8m) (£9.8m) Gross profit £494.7m £471.9m £22.8m Gross margin % 53.4% 52.8% +60 bps Net operating costs1 (£374.8m) (£343.3m) (£31.5m) Operating profit £119.9m £128.6m (£8.7m) Net financial expenses (£5.9
Slide 30: Balance sheet
Balance sheet H1 FY26 H1 FY25 FY25 27 December 2025 28 December 2024 28 June 2025 Right-of-use assets £231.6m £218.8m £221.1m Other non-current assets £231.4m £211.2m £222.2m Inventories £228.3m £228.5m £226.3m Cash £46.3m £57.1m £30.0m Other current assets £41.6m £38.7m £41.9m Total assets £779.2m
Slide 31: 5-year financial summary
5-year financial summary FY21 FY22 FY23 FY24 FY25 H1 FY25 H1 FY26 (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 £893.7m £926.3m Total sales growth 26.3% 18.4% 3.6% 4.1% 3.8% 2.4% 3.6% Gross margin % 51.6% 51.2% 50.1% 51.8% 52.4%
Slide 32: 10-year dividend history
10-year dividend history FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 Ordinary dividend per share Interim 6.5p 7.0p 7.5p - 12.0p 14.0p 15.0p 16.0p 16.5p 17.0p Final 19.5p 19.5p 20.5p - 23.0p 26.0p 27.0p 27.5p 28.0p n/a Total 26.0p 26.5p 28.0p - 35.0p 40.0p 42.0p 43.5p 44.5p n/a Special Dividend
Slide 33: Committed to being Good & Circular
Committed to being Good & Circular Reducing our impact on the Planet, engaging in our Communities, and ensuring our People feel at home Our home the Our home in A home for our Planet Communities People • 54% own-brand products now meeting • £2m reached in fundraising for our • c.£10m saved by c.1,70
Slide 34: 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