Dunelm profits surge in half-year results
Homeware retailer Dunelm has reported a 19.4% increase in profits before tax to £83.6m for the half-year period ended 28 December 2019.
Operating profit for the period was £87.6m, an increase of 23.9%, and reflected higher sales and improved gross margin delivery, as well as a “£1.3m benefit from the adoption of IFRS 16”.
Total like-for-like revenue also increased by 5.6%, against a “strong comparative” period in 2019 which saw revenues increase by 7.8%.
Additionally, total revenue growth for the period was 6%, up from 1.2% during the same period last year, driven by new store openings. Dunelm said growth was also seen across most product categories, including furniture sales which increased by 42%.
CEO Nick Wilkinson said: “We have made good progress over the first half, following a strong performance last year, which is reflected in the significant growth delivered in both sales and profits.
“We continue to build strong foundations for future growth. The successful launch of our digital platform accelerates our ability to innovate our customer proposition and we remain focused on operational improvements across all areas of the business.”
He added: “We are excited by the significant opportunities ahead for Dunelm. We remain determined to create significant value for all our stakeholders and to play a positive role in the communities within which we live and work.”
