London, Feb 16, 2026, 14:43 GMT — Regular session.
- Dunelm shares edged higher in London trade after the retailer set a new buyback programme.
- The repurchases are aimed at covering employee share awards, not shrinking the share count.
- Investors now look to April’s trading update for a cleaner read on demand.
Shares in Dunelm Group (DNLM.L) were up 0.4% at 971.5 pence by 1426 GMT on Monday after the homewares retailer unveiled a fresh share repurchase plan. The mid-cap FTSE 250 was little changed. (Barclays Research Centre)
Dunelm said it had entered an arrangement with Barclays to buy back up to 1.6 million shares, with total purchases capped at 17 million pounds. A buyback is when a company purchases its own shares; Dunelm said the stock will be held in treasury — kept for later use — and will not be cancelled. (Investegate)
The move lands as the company tries to rebuild confidence after a January profit warning that pointed to cautious spending and heavy discounting across the market. Dunelm said then it expected annual profit to come in at the lower end of market expectations. (Reuters)
The programme is modest and geared to staff share awards, so it was never likely to be a big re-rating moment. Still, it gives the stock a new, steady source of demand in the market.
Earlier this month, Dunelm reported a 7.5% drop in first-half pretax profit to 114 million pounds and flagged stronger sales growth early in the third quarter after winter sales and an encouraging response to spring ranges. Analysts, on average, expect pretax profit of 214 million pounds for fiscal 2026, according to a company-compiled consensus. (Reuters)
Chief executive Clo Moriarty said at the time the retailer was “seeing stronger sales growth in early Q3” after the Winter Sale and its new Spring ranges. The company also said in that statement it intended to start a buyback to meet obligations under employee share schemes, with no shares cancelled. (Investegate)
Monday’s plan follows that playbook. Barclays will buy shares in the market within set limits, and Dunelm can later reissue them to meet share awards.
Dunelm sells bedding, furniture and other homewares — an area that can swing with household budgets and how hard rivals push promotions. Traders will be watching for any sign that demand holds up beyond the post-holiday sales period.
But buybacks don’t fix demand. Another round of sharp discounting, or a softer backdrop for big-ticket items, could squeeze margins again and leave the stock struggling for direction.
Next up is Dunelm’s third-quarter trading update on April 16, followed by a fourth-quarter update on July 16 and full-year results on Sept. 8, according to its financial calendar. Those dates are the next clear catalyst for whether momentum is real — and how much of the buyback actually gets used. (Dunelm)
