Homewares retailer Dunelm has issued its trading update for the 26 week period to 2nd January 2016.
The retailer saw LFL stores sales of £205m in the 13 weeks up to 2nd January, and £376.8m in the 26 weeks up to 2nd January.
Dunelm saw £16.5m of sales from home delivery in the 13 weeks up to 2nd January, and £28m in the 26 weeks up to 2nd January.
In addition, sales from non-LFL stores totalled £24.2m in the 13 weeks up to 2nd January, and £43.2m in the 26 weeks up to 2nd January.
Having adjusted for the beneficial calendar impact, sales performance in the quarter reflected:
- Reduced footfall in LFL stores which Dunelm attributed to the particularly mild weather, partially compensated by improved conversion and growing transaction values
- Ongoing store portfolio expansion, with three new superstores opened and one major refit completed
- Continuing growth in online business, including a +23.4% increase in home delivery sales.
Gross margin percentage growth for the half year is estimated to be +30bps compared with the first half of last financial year. This included the impact of Winter Sale, which is estimated to have depressed margin growth by -20bps in the quarter, and by -10bps over the half year.
The total number of superstores trading at the period end was 151. There are seven new stores committed, as at the period end, including two relocations. Dunelm expects three of these new stores to open in the remainder of the financial year, taking its total anticipated openings for the financial year to six including the two relocations. This will bring the year-end superstore count to 152. Dunelm's medium term target remains to operate from around 200 superstores across the UK.
The Group remains strongly cash generative with closing net debt of £48.1m – H1 15: net cash £61.4m – reflecting the cash returned to shareholders in H2 15. Daily average net debt across the half year amounted to £47.5m.
Commenting on Dunelm's performance in the period, John Browett, chief executive, says: "These trading numbers are a reasonable outcome given the unseasonably warm weather. We have had a very strong sale after Christmas and we expect further good progress in the second half.
"I am really pleased to have joined Dunelm. Clearly our proposition remains popular with customers and I look forward to working with the team here in fully delivering the potential of the business over the coming years."
The full report can be found here.
