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Dunelm shares plummet by nearly a fifth despite strong first half

Published: January 15, 2026 at 12:28 pm

Author: Patrick Killeen

Shares in Dunelm Group have fallen by almost a fifth today after the UK homewares retailer warned full-year profits are now expected to come in at the lower end of market expectations.

The update – and subsequent 17.6% share price dip – comes despite posting a solid first-half performance.

The retail giant’s total sales rose 3.6% to £926 million in the first half of its financial year, helped by continued growth in its core categories and stronger digital participation, with online-related sales accounting for 41% of total revenue. 

However, the group said trading became “more challenging” in the second quarter, with Q2 sales up just 1.6% to £498m, following stronger momentum in Q1.

Dunelm said the tougher performance was particularly evident around Black Friday and into December, as competition intensified across the market. 

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