A three-year plan to build a bigger, better and bolder Dunelm
We have a strong track record of sustained growth, attractive profitability, robust cash generation and consistently high shareholder returns.
By accelerating top-line growth, structurally reducing the cost base and maintaining disciplined investment, we expect to restore sustainable operating leverage and drive profit growth over time, supported by robust cash generation and balance sheet capacity.
Stores like-for-like + Digital
Year-on-year growth
More reach, loyal customers, more missions
New space
Up to 10
new stores per year
c.100 identified locations
Total sales growth
Mid-to-high single digit
Profit
Save to invest
£100m
Cost removal to fund equivalent reinvestment1
Non-recurring
£30-£40m
Opex in next two years, reported as adjusting
Adjusted PBT margin2
c.11%
Capital allocation
Prioritise investment
c.£125m
Incremental capex: new and existing stores, supply chain
Increasing
Ordinary dividend
Targeting return to 1.75x - 2.25x cover
Net debt3 : EBITDA4
Within
0.2x - 0.6x
Returns
Growing
Adjusted EPS
Efficient
Balance Sheet
Return on Capital Employed5
c.30%
Compared to FY26 base. Before growth in volume-related costs and inflation.
52-week statutory PBT excluding adjusting items, expressed as a percentage of total sales.
Cash and cash equivalents less total borrowings. Excludes IFRS 16 lease liabilities.
Operating profit plus depreciation and amortisation of property, plant and equipment and intangible assets plus loss on disposal and impairment of property, plant and equipment and intangible assets plus depreciation of right-of-use assets.
Adjusted net operating profit after tax as a proportion of total assets excluding non-current liabilities and current lease liabilities.