Dunelm upgrades profit forecast after strong second quarter
Homewares retailer Dunelm has seen its second quarter total sales climb by 13% year-on-year to £407 million and by 26% on pre-pandemic levels two years ago.
In the three months to 25 December, growth was broad based across nearly all product categories, although furniture and seasonal ranges performed particularly well.
Nick Wilkinson, Dunelm chief executive, said: “We are delighted with our ongoing strong performance, which demonstrates the growing appeal of our homewares offer and includes some standout contributions from our furniture and seasonal categories.
“Our integrated physical and digital shopping experience has transformed since we launched our new digital platform in October 2019. These advances have enabled us to reach more customers with our brand and specialist homewares product range, whilst also providing a much improved customer experience. Our digital platform and capabilities also give us more confidence and ambition for the future.”
During the period, Dunelm opened a new ecommerce operation in Stoke in partnership with GXO which will enable it to offer shorter lead times to customers. In addition, the development of its new furniture hub in Northamptonshire is on track and is expected to be fully operational in its third quarter.
Dunelm also opened a new superstore in Beverley in East Yorkshire in the quarter to take its total number of stores to 176.
The retailer now expects its first half pre-tax profit to come in at approximately £140 million compared to £112 million last year and also anticipates that full year profit will be materially ahead of market expectations if there is no further Covid-19 related disruption.
Wilkinson added: “Whilst there are several macro uncertainties to be navigated, we feel well placed to continue to deliver profitable growth across all channels and grow market share as the 1st choice for home for UK homelovers.”
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