Panmure Liberum has upgraded Dunelm Group PLC (LSE:DNLM) to 'hold' from 'sell' and nudged its target price up to 820p from 810p, saying the homewares retailer's fourth quarter brought relief that trading did not deteriorate further. The broker described the outcome as respectable given challenging conditions and adverse weather, though it remains cautious about calling the turn after weaker news flow through the second and third quarters.
Dunelm Group PLC (LSE:DNLM) has said full-year profit will be in line with expectations after sales growth of 2.9% in its final quarter, as new chief executive Clo Moriarty promised to reveal plans for a bigger, better and bolder business in September. The homewares retailer said sales rose to £428 million in the 13 weeks to 27 June despite two separate weeks of exceptionally warm weather that dented store footfall.
British homeware retailer Dunelm on Thursday forecast its annual profit at the lower end of market expectations, citing persistent weak consumer spending due to uncertainty linked to the conflict in the Middle East.
Dunelm Group PLC shares could be poised for a recovery after a difficult start to the year, according to JPMorgan, which has upgraded its recommendation. The homewares retailer has fallen 15% year to date after weak second-quarter sales and concerns over profit weighting between the first and second half.
Dunelm Group plc (DNLMY) Q2 2026 Earnings Call Transcript
Dunelm Group PLC told investors that first-half profit slipped despite higher sales, as a softer second quarter and the timing of costs offset a stronger gross margin and steady demand in core categories. The homewares retailer reported total sales of £926.3m for the 26 weeks to 27 December 2025, up 3.6% year-on-year, with digital participation rising to 41% of sales.
After Dunelm Group PLC's (LSE:DNLM) warned on profits last week, Deutsche Bank has lowered its price target from 1,360p to 1,200p but reiterated its 'buy' rating. Shares in the retailer fell 20% after its profit warning revealed margins in the second quarter came under pressure as operating cost inflation outpaced like-for-like sales growth.
Dunelm Group PLC (LSE:DNLM) warned on profits after reporting slower sales growth for the past quarter. The homewares retailer reported a 3.6% increase in total sales to £926 million for the first half of its financial year, with quarterly sales growth slowing from 6.2% in the September quarter to 1.6% in the three months to 27 December amid a competitive retail environment.
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RBC has turned more bullish on Dunelm Group PLC (LSE:DNLM), upgrading the homewares chain to 'outperform' from 'sector perform' and nudging its price target to 1,300p from 1,200p. The shares rose 3% to 1,153p on Monday.
Dunelm Group PLC (LSE:DNLM) shares "appear oversold" ahead of the retailer's first-quarter update on Thursday 23 October, according to Deutsche Bank. Investors seem to have steered clear due to cautious consumer commentary in September, said analyst Benjamin Yokyong-Zoega, yet subsequent industry data has shown strong demand for the homewares category.
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