Dunelm revels in sales growth and anticipates full-year profits ahead of market expectations

Dunelm has revealed half-year sales growth of 11 per cent year-on-year in its second-quarter trading update, with the home furnishings retailer expecting full-year profits before tax to be “materially ahead” of expectations.

The company’s board expects profits to pass the market consensus of £181m for the full-year, provided there is no further Covid-19 disruption.

This outlook was supported by strong second-quarter sales £407m – up 13 per cent year-on-year – and half-year sales of £796m, which is not just an 11 per cent increase year-on-year but a 36 per cent rise on a two-year pre-pandemic basis.

Growth was broad based, across nearly all product categories, with its furniture and seasonal ranges performing particularly well.

Dunelm has also boosted its ecommerce operations, while opening new stores in Stoke and Yorkshire – increasing its footprint to 176 stores

Nick Wilkinson, chief executive said: “We are delighted with our ongoing strong performance, which demonstrates the growing appeal of our homewares offer and includes some standout contributions from our furniture and seasonal categories. Whilst there are several macro uncertainties to be navigated, we feel well placed to continue to deliver profitable growth across all channels and grow market share as the 1st choice for home for UK homelovers.”