Dunelm sees 7.8% profit rise
Homewares retailer Dunelm saw pre-tax profit rise by 7.8% to £52.2 million in the half year to 31 December.
Revenues increased by 8.8% to £299.9 million while-for-like sales grew 1.1% compared to a 1.2% decline in the previous year.
The company continued to increase its market share in the period, opening 11 new superstores with four further sites committed for launch in the current financial year.
Gross margin rose 10 basis points to 49.2%
Dunelm said a key focus for investment was expanding its multi-channel operation. Online sales continued to grow strongly and represented around 2% of revenues over the period. Site traffic was equivalent to footfall in over 30 superstores and Dunelm said there had been an improvement in conversion following the launch of its Reserve & Collect service in October.
Regarding the outlook chief executive Nick Wharton said: "Whilst we remain cautious about the impact of the UK consumer environment on our trading in the near term, we will continue to focus on the disciplined execution of our growth strategy and on tight operational management.
"With eight further store openings already committed, momentum in multi-channel and with our "Simply Value for Money" proposition resonating with a wide range of customers, we remain confident in the future growth prospects for the business."
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