Dunelm Group plc

Hello and thank you for your interest in Dunelm and for engaging in our full year results for FY26. We have had a solid year of performance with 3.1% total sales growth coupled with slight margin expansion to 52.5% all in a year which continues to present challenges to the whole sector. Within the homewares and furniture 25 billion UK market, we yet again gained share to 7.9%. Our customer satisfaction increased for another year, this time up 2.4%. But I definitely want to highlight that this is already top quartile performance. But it was encouraging to see this measure improve year on year. Through a number of efficiency and productivity initiatives, we also made strong inroads covering the on-cost of inflation, resulting in a flat year-on-year profit of £211 million. Free cash flow was up to £155 million from £127 million. However, this was primarily driven by some heightened investments in the previous year as a result of our freeholds and acquisitions. You will all be aware of our drive to be present where our customers are, and hence have been calling out the role of digital within our business for a number of years now. Supported by continued web enhancements, the launch and scaling of our app, and store-assisted digital selling, we are currently at 42% digital sales with consistent increases annually. Finally, we are very proud to communicate our growing ordinary dividend per share at 45.5 pence, I hope you all know that our focus on our customers at Dunelm is a core part of what I and our team stand for. Internally, we refer to this as customer obsession and that's increasingly driving our decision making in our business and therefore it is important to see the overall year-on-year uptick in customer satisfaction. With renewed focus on service and in-store experience, supported by a revitalised store operating model, alongside the rollout of our self-service tills and a revamp of our in-store walkway, showcasing the very best of our offers or most relevant products. We drove an increase of 3% in our store CSAT. As trails throughout the year, our growing click and collect offer came with an increased CSAT too. Whilst noting this has come from a lower base, enhancements such as the delivery of click and collect rooms at the front of store and pick by department functionality have facilitated ease and speed of pick and hence customer experience home delivery remains on our watch list as whilst our own two-person delivery associated with our furniture proposition did increase year on year by two percentage points our courier service enabled by third parties went back across the year We do have a number of operational and technology-led changes in our plan to support improvement in this space, however. One of our key strengths and the reason our customers come back to us time and time again is because of our products.

They are brilliant.

And whether that's one of the 6,000 new owned brand products we brought to the market last year or from our full range repertoire. Whilst our heartland products continue to perform strongly, lighting in particular has gained more traction with our customers up 8 percentage points year on year we are also encouraged that following a Q2 availability challenge on furniture our availability has been strong throughout the second half our 12 campaigns and events continue to play an important role with customers outside of our two core sale events we've flagged with you in Q2 the impact of Black Friday and the associated considerations for us looking forward Relevance is key, and our focus on summer living paid dividends with our campaign matching the size and scale of our traditional winter warm performance, both of which were our top performing campaigns. There is more to do in this space, however, as summer living hadn't historically been a key area of focus for us, and we know there was unmet demand. But while relevance is important, having a point of view on design as a specialist is also critical. And our collaboration with Yinka Laurie, from twinkle in the eye to product on shelves and online within 18 months, demonstrated not only that, but the pace and precision of execution. One of the rugs in the range sold out within a day of launch, and the pink and green dining chair within a week. In areas like this, planned scarcity will continue to be a key factor. I should note, that we are very proud of our availability metrics across our regular lines, which, supported by our strong forecasting and replenishment systems, continue to ensure we are on time and in full for our customers. This year has also been important for its continued reach across channels. We are not satisfied with the number of store openings and have bigger ambitions on this front moving forward. But the quality and impact of the two new stores and one reopening we have had is excellent. With business leading transaction levels for Kingston and continued access to London infills with Wandsworth, we continue to gain confidence with the choices we are making on proposition, on flow and on format. We've also had some strong refrits ensuring we are rolling out the tried and tested latest blueprint and the high single digit increases in St Albans we are now seeing year on year validate those choices. Finally, we continue to invest in stores that are not at the standard they should be. And later in the strategy update, we'll discuss this more. We are passionate about digital connectivity. Not only because this is how our customers want to shop, but moreover, because it's how our customers shop in the most effective way with us. Helping them name larger baskets with more frequent shops. Our app gives us 40% higher basket value than web-only customers, which is already ahead of store-only customers. And conversion through this channel is higher. This year, we've become more ambitious with our social channels, in particular TikTok and YouTube. However, whilst active, we firmly believe we can continue to grow these channels. We have to acknowledge that sometimes we are followers. We are definitely not fast enough and weren't on the app. But as a business, when we move, we move. And we are delighted to have been one of the first launch partners with Google on conversational commerce in Europe through our AI-powered shopping assistant, which, if you're an iOS user, you can access now. The future's here. We do pride ourselves on service, but there is a big prize for efficient service. We are now 85% of the way through our self-checkout rollout, with two-thirds of our customers shopping in this way where it's an option. And as with all retailers, we have taken measures to combat shrink whilst improving colleagues' safety, and are confident that these are working for us. It's nothing in isolation, but moreover, prompts, triggers, cameras, tech, and people, all in combination. And I did want to give a big shout out to our made-to-measure offer, which has historically been the perfect combination of product and service combined. At the end of this year, we layered in technology through Salesforce, which has enabled us to enhance better availability and will support M2M's double-digit growth moving forward. So, a lot going on this year. But I'll now hand over to Karen, who will share the review of our numbers.