29 May 2024, 03:21
By Furniture News Jan 07, 2019

Dunelm cautious despite revenue growth

Dunelm saw LFL revenue continue to grow in its second quarter (to 29th December 2018), up +9.0%. Store revenues rose by +5.7% YoY, while online grew +37.9%.

Total growth at group level was +2.0%, reflecting the closure of the Worldstores and Kiddicare websites (as previously announced). Having closed the Worldstores and Kiddicare websites, Dunelm is focused on its core offer, and continues to invest in its new Home of Homes marketing campaign and develop a stronger multichannel propostion – later than expected, the retailer now expects to launch its new website in Q4.

H1 profits before tax are expected to be in the region of £70m, following an impairment charge of £3.8m in relation to the Fogarty brand.

Nick Wilkinson, Dunelm's chief executive, says: "We are pleased with our overall performance in the first half, and are helping more customers than ever to create a home they love. By focusing back on our core business, under one Dunelm brand, we are improving our trading and financial performance.

"The positive LFL revenue growth both in stores and online, highlights the strength of our customer offer. Our multichannel proposition is improving all the time, and we are looking forward to introducing our new web platform in the summer, using more flexible technology which will allow us to better serve our customers in a changing retail landscape.

"Despite our strong performance in the year to date, we remain cautious on the outlook for the second half given the ongoing uncertainty in the UK economy. However, in the medium term, we see significant opportunity to grow the business by focusing on our customers and seizing opportunities in a digital world."

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