Dunelm sees sales rise to £872m in H1
Looking ahead, the business also expects profit before tax for its full year will be in line with expectations despite volatile market conditions and unpredictable consumer spending
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Dunelm has reported strong sales growth in the first half of the year, with total sales increasing by 4.5% to £872m for the 26-week period ended 30 December 2023.
It also recorded continued sales growth in Q2 in a challenging market, with total sales increasing by 1.0%. Its gross margin also Increased by 160bps in the first half, while offering “outstanding value”.
Additionally, the group opened three new stores during the second quarter, taking the total to 183, and has stated that it remains on track to achieve its full year store opening plans.
Looking ahead, the business also expects profit before tax for its full year will be in “line with expectations despite volatile market conditions and unpredictable consumer spending”.
Nick Wilkinson, chief executive officer of Dunelm, said: “The breadth of our range and outstanding value of our proposition continues to be well received by customers, resulting in a strong sales performance for the first half despite a tough market backdrop.
“Consumers remain under pressure and are actively seeking true value at all price points. Our customer offer and positioning as the ‘Home of Homes’ resonates particularly well in this environment, and we are confident we have continued to gain market share. At the same time, our strong operational grip continues to help us navigate the difficult environment and manage our margins.”
He added: “Supporting our communities remains at the heart of Dunelm and I would like to thank all our colleagues and customers for making our recent Delivering Joy campaign our biggest ever, donating an incredible 125,000 gifts to local good causes during the Christmas period.
“Looking ahead, we remain excited about the compelling opportunity for growth for our business. We have continued to execute at pace on our strategic plans, opening four new stores over the first half of the year, whilst continuing to expand our ranges and improve our digital offer. Our new Spring collections look fantastic in store and are being really well received by customers as we reach the end of our Winter Sale, leaving us well placed to make further progress in the months ahead.”
