Dunelm hails strong second quarter performance
Homewares retailer Dunelm increased its total sales by 11.8% to £360.4 million in its second quarter, despite the majority of its UK store estate being closed in November due to Covid-19 restrictions.
Welsh stores were closed for a 16-day period from mid-October while many Dunlem stores in other parts of the UK were impacted by regional restrictions towards the end of December.
Dunelm said consumer demand for homewares was buoyant in the 13 week period, which ended on 26 December. Online sales were particularly strong and accouned for 40% of total sales.
The results mean that Dunelm expects pre-tax profit for the first half of its financial year to be approximately £112 million when a £14.5 million Job Retention Scheme repayment is included.
Nick Wilkinson, Dunelm chief executive, said: “Our strong performance continued into the second quarter, whilst we adapted to the various restrictions and resulting store closures across our estate. We enter 2021 with further restrictions and our primary focus remains the health and wellbeing of our colleagues and customers across the business.”
Looking ahead to the second half of its financial year, Dunelm said the outlook remains uncertain given the lack of clarity on when retail stores will be able to reopen. As a result, the company said it is unable to provide any meaningful guidance for the full year.
Wilkinson added: “Beyond this near term uncertainty, we’ve never felt more confident about the future. Our scalable proposition combines an in-store and digital offer which, with agile technology, we will continue to develop at pace. As our homes play an increasingly important role for all of us, we are well placed to build even closer relationships with our customers and extend our market leadership.”
