Dunelm reports increase in first half sales as it announces CEO is to step down
Dunelm has posted a 2.4% increase in first half sales despite a soft homewares and furniture market.
In the six months to 28 December, the retailer’s sales rose to £893.7 million from £872.5 million in the prior year while pre-tax profit edged up 0.2% to £123.2 million.
The retailer put in a strong digital performance in the period with 39% of total sales generated through online channels compared to 36% a year earlier.
Dunelm said the sales growth was driven by volume as its prices remained broadly stable in the period. It also attracted more customers and made market share gains.
Nick Wilkinson, Dunelm chief executive, said: “Our performance over the first half reflects the growing attraction of the Dunelm offer for a wide range of customers, and the quality and resilience of our business model.
“Amidst a challenging backdrop for retail, those attributes have helped us deliver increased sales, a strong gross margin, and both customer and market share growth.”
During the period, the retailer expanded its footprint by opening its first inner London store at Westfield and acquiring 13 stores in Ireland through its purchase of Home Focus. This year, it is set to celebrate a major milestone with the opening of its 200th store.
Dunelm has reported a strong start to the second half, stating that early trading has been encouraging and that its full-year pre-tax profit expectations remain unchanged.
Separately, the retailer has announced that Wilkinson has informed the board of his intention to retire after seven years at the helm.
Alison Brittain, chair of Dunelm, said: “Nick has been a tremendous leader for Dunelm and amongst his many achievements, he has successfully guided the group through a global pandemic, driven a step-change in the digital offer, established strategic capabilities across the business including in tech and data, and maintained the unique, entrepreneurial culture which makes Dunelm so special.
“Nick will continue to lead the business over the coming months as we transition to a new CEO, maintaining a focus on delivering long-term, sustainable growth for all stakeholders.”
