1% year-on-year to £472 million, the company said. 3%, according to major media reports. Dunelm expects annual pre-tax profits to be at the lower end of market expectations of between £210 million and £217 million.
The retailer anticipates the war in Iran will have a small direct cost impact in this financial year, though the exact monetary significance is unclear. According to Daily Mail - Money, Dan Coatsworth, head of markets at AJ Bell, described consumer confidence as being rocked by the energy shock created by the conflict. Tesco is also cautious about the war's impact on sales, with boss Ken Murphy saying it created further uncertainty in its outlook for the year, the supermarket reported.
Consumer confidence has been rocked by the energy shock created by the conflict in Iran.
Dunelm's shares fell in early trading on Thursday and are down 27% year-to-date, including a 4% fall this morning, multiple reports indicate. Clo Moriarty became chief executive of Dunelm in October 2025, according to major media sources. Dunelm reported a drop in profits in the run-up to Christmas in a challenging environment, the company said.
Chief executive Clo Moriarty stated that the company saw further sales growth in Q3 against an uncertain backdrop for both customers and businesses, and that although the external environment is not helpful in the short term, Dunelm continues to focus on areas within its control. It remains uncertain what specific factors caused the softening in trade during March beyond general economic uncertainty, or how much of the profit warning is directly attributable to the Iran war versus other economic factors.