Dunelm hails ‘record’ trading as sales surge 10%
Dunelm said it expects FY22 pre-tax profits to be in line with its expectations of £198m - £218m, and it is ‘well placed’ to navigate inflationary challenges
Dunelm has announced its sales rose by 10.6% year-on-year from £719.4m to £795.6m in the 26 weeks ending 25 December 2021 (H1 FY22), up 36% from pre-Covid levels.
The group also reported “record” pre-tax profits of £140.8m, rising 25.3% year-on-year from £112.4m and up 68% from £83.6m in H1 FY20. As a result, Dunelm announced a special dividend of 37p-per-share in addition to an interim dividend of 14p, up from 12p in H1 FY21.
Meanwhile, total digital total sales were down 2% in H1 FY21 to 33%, although it has more than doubled since the comparative period in FY20 by 120.7%. Proposition and brand development has also driven active customers to 13 million, a 6.3% increase over the 12 months.
Dunelm said it has outperformed in both its homewares and furniture departments due to better availability and range extensions, and its seasonal ranges sold “particularly well” in Q2.
Additionally, the company reported a gross margin of +80bps year-on-year, due to higher full price sell through of seasonal lines and with the prior year margin impacted by store lockdowns.
Looking to FY22, Dunelm said it expects FY22 pre-tax profits to be in line with its upgraded expectations of £198m – £218m, with consensus of £206m, following “encouraging” tading to date in the second half of the year, including the winter sale. Additionally, the company said it is well placed to navigate inflationary challenges.
Nick Wilkinson, CEO, said: “When we announced our interim results in 2020, we were weeks away from the world being turned upside down. Two years later, we are moving forwards as a bigger, better business, with more capability, more resilience, more ambition, and delivering accelerated growth.
“We have not only worked hard and innovated to enhance our customers’ experience across all channels and categories, but have also continued to develop our customer proposition and capabilities at pace to support our future growth. Our product range is now broader and better than ever, with an increasing focus on sustainability.”
