Dunelm Group PLC (LSE:DNLM) shares fell almost 7% after the homewares retailer reported profits just above forecasts but said recent trading had yet to encounter signs of a sustained consumer recovery.
In what was the last set of results for CEO Nick Wilkinson, profit before tax increased 2.7% to £211 million for the 52 weeks to 28 June 2025, in line with average analyst estimates, as margins for the homewares retailer held steady at 11.9%.
Sales came to £1.77 billion, up 3.8% on the year before, as revealed in a July update, with digital channels accounting for 40% of total sales, up from 37% last year.
Free cash flow was £127.4 million compared with £132.2 million, with net debt rose to £102.0 million from £55.6 million.
Dunelm declared a final ordinary dividend of 28p, taking the total ordinary dividend to 44.5p, as well as repeating its special dividend trick of 35p per share earlier this year.
"In my final set of results at Dunelm, I'm pleased to report another successful year, marked by growth in sales and profits, increased market share and meaningful strategic progress," said Wilkinson.
He hailed some final milestones as the company opened its 200th store, including its first superstore in inner London, opened the first overseas and bought the brand and archive of Designers Guild.
Current trading was said to have "pleased" management, "although yet to see signs of a sustained consumer recovery", while future plans included a Dunelm app in the autumn, more new stores, and further investment in growth and productivity.
The shares fell 6.8% to 1,157.74p in early trading on Tuesday.
Analysts at Peel Hunt noted that results were in line with upgraded forecasts from July and that net debt of was better than its forecast, "with prospects for further special dividends this year".
Comments on current trading seemed a "fairly positive assessment given the summer heatwave".
Those at broker Shore Capital agreed, saying it "looks a strong final update" from the outgoing CEO, though "the outlook is light on concrete figures", which was "understandable" given new CEO Clodagh Moriarty is starting at the beginning of October.
** Update: Adds share price details, broker comment **