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Dunelm Group plc (DNLM.L)

Consumer Cyclical Out of favour

Ever wondered how a humble market stall grew into Britain's go-to destination for curtains, cushions, and kettle-shaped teapots?

£8.70
≈ 870p · London-listed shares are usually quoted in pence (GBX) elsewhere; the Almanac shows pounds (£1 = 100p).

Is Dunelm Group plc a good stock for a UK beginner?

The honest version: There's no rating here and nothing for sale. In its favour: Familiar household name with a strong high street and online presence. Worth weighing: Recent earnings dipped compared to the previous year. Below, we lay out what it does, what its numbers mean, and the honest risks, so you can decide for yourself.

No rating · no target price · nothing for sale here
Price-29.5%
52-week range-26% past year
£8.70
Low £7.07High £12.49
Where today's price sits versus its past year - context, not a signal.
If you had put £1,000 into Dunelm Group plc
£705-29%

Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. Past performance is not a guide to the future, and it could just as easily have fallen.

How much has Dunelm Group plc actually fallen?

−43%

Over the last 2 years of daily prices, Dunelm Group plc fell as much as −43% from a high to a later low. Drops of this size are a normal part of owning a share - worth knowing in advance, so a dip doesn't come as a shock.

Worst peak-to-trough fall in the daily closing price over the period we hold. Past falls are not a forecast - it can fall further, or recover.

Market cap: The company's total value on the stock market - share price times the number of shares. Big = 'large-cap', small = 'small-cap'.
£1.75B
Avg volume: How many shares change hands on a typical day. Higher means it's easy to buy or exit without moving the price.
439.74K
Day range: The lowest and highest price the shares traded at during the latest day.
£8.70 – £8.93
52-week range: The lowest and highest the shares have traded over the past year - a sense of how wide the swings have been.
£7.07 – £12.49
P/E ratio: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth.
11.9
Dividend yield: The yearly dividend as a percentage of the share price - roughly the income you'd earn from dividends alone.
5.2%
Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down.
0.96
How bumpy is it?Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down. 0.96
Calm
Wild
Roughly in step with the market

Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.

Why has it been moving?▼ -0% past week · ▼ -26% past year

Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.

The bull case

Dunelm cements its position as the undisputed market leader in UK homewares with expanded market share.

The bear case

Aggressive online competition permanently erodes profit margins and customer loyalty.

What does Dunelm Group plc do?

Dunelm is the high street champion of home furnishings across the UK, outfitting living rooms and bedrooms with everything from bedding to lamps. It brings in cash by selling these homewares both through its sprawling out-of-town retail warehouses and its bustling website. The key detail to keep an eye on is how shoppers keep spending on home comforts when household budgets feel the squeeze.

VQGMI
Factor profile

On our factor screen it looks strongest on income and quality, and weakest on momentum.

Value: How cheap the stock looks versus profits, sales and assets (higher = cheaper). 52Quality: How profitable and financially healthy the company is (higher = stronger). 56Growth: How fast revenue and earnings are growing (higher = faster). 36Momentum: How the share price has been trending recently (higher = stronger recent run). 30Income: The dividend income on offer and how sustainable it looks (higher = more/steadier). 63
Quick checks
What's strong
  • Familiar household name with a strong high street and online presence
  • Healthy gross profit margin above fifty percent
  • Generous dividend yield that appeals to income-focused observers
What to watch
  • Momentum screens low (30/100)
  • Worsening economic conditions dampening enthusiasm for home improvements
  • Rising shipping or warehouse costs eating into profit margins
  • Intense competition from online-only homeware discounters

What do Dunelm Group plc's numbers mean?

P/E
11.7
This shows you are paying roughly £11.70 for every £1 of annual profit the company currently makes.
Lower than most of the 104 Consumer Cyclical shares we cover
Dividend yield
5.1%
This tells you the share of profit handed back to shareholders as a cash payout, relative to the current share price.
Higher than most of the 122 Consumer Cyclical shares we cover
Return on equity
86.1%
A very punchy number showing how efficiently the business turns shareholder funds into actual profit.
Higher than most of the 103 Consumer Cyclical shares we cover
Gross margin
52.7%
For every pound taken at the till, over half is left over after paying the basic cost of making the goods.
Around the middle of the 122 Consumer Cyclical shares we cover

Does Dunelm Group plc pay a dividend?

Yes - Dunelm Group plc currently pays a dividend of about 5.2% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.

What do the numbers say about Dunelm Group plc's dividend?

There's no rating here, and we don't judge whether the dividend will continue - that would be advice. Here are the figures income investors usually look at, and what each one means, so you can weigh it up yourself.

Dividend yield5.2%The yearly dividend as a percentage of today's price. A very high figure often means the price has fallen because the market expects a cut, so a big yield is a question to look into, not a prize.
Payout ratio61%The share of profit paid out as dividends. A lower figure leaves headroom; near or above 100% means most or all of the profit is going out as dividends.
Dividend cover1.7×Profit divided by the dividend (the payout ratio the other way up). As a rough convention many income investors like around 2× or more; below 1× means the company paid out more than it earned that year.

Figures are from the latest available data and can be distorted by one-off results. Past payments don't predict future ones, and a dividend can be cut at any time. This lays out the numbers to help you understand them - it is not a view on what will happen.

When does Dunelm Group plc report earnings, and how did recent quarters go?

Dunelm Group plc is next scheduled to report on about 2026-09-08 - dates can move, and we don't predict results; this just tells you when to look.

Each quarter a company reports its results against what analysts expected. ‘Beating’ or ‘missing’ is about that expectation, not whether the business is doing well in absolute terms.

See who else reports over the next two weeks →

Reported vs expected earnings per share (EPS) from published results; the expectation is the analyst consensus, not our view. Report dates are estimates that can move.

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What are the scenarios for Dunelm Group plc?

An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.

£12£9£7today · £9▲ Bull · £10• Base · £9▼ Bear · £8in 1 yearILLUSTRATIVE · NOT A PREDICTION OR PRICE TARGET
Bull
+10% to +15%Shoppers return in droves for seasonal home refreshes, boosting short-term sales.
Base
-2% to +5%Trading remains steady as people continue spending cautiously on household items.
Bear
-15% to -10%High street footfall dips sharply as cost-of-living worries weigh heavily on shoppers.

What are the pros and cons of Dunelm Group plc?

3bull points
6bear points

How many points the write-up makes each way — a balance check, not a score or verdict.

The bull case3
  • Familiar household name with a strong high street and online presence
  • Healthy gross profit margin above fifty percent
  • Generous dividend yield: The yearly dividend as a percentage of the share price - roughly the income you'd earn from dividends alone. that appeals to income-focused observers
The catch3
  • Recent earnings dipped compared to the previous year
  • Vulnerable to shifts in UK consumer spending habits
  • High price-to-book: The share price versus the company's net assets per share (its book value). Under 1 can look cheap, though it varies a lot by industry. ratio indicates investors are paying a hefty premium for net assets
Key risks3
  • Worsening economic conditions dampening enthusiasm for home improvements
  • Rising shipping or warehouse costs eating into profit margins
  • Intense competition from online-only homeware discounters
What would flip the thesis

The write-up's own warning lights — if these start happening, the case above changes.

Confidence: medium · data: GBP · flags: none · Charts by TradingView Lightweight Charts™
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Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →

This plain-English summary was auto-generated on 2026-08-02 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.

Figures as of 2026-08-02. Prices may be delayed and numbers can go stale - always double-check before acting.