Dunelm has shared its interim results for the 26 weeks to 30th December 2023. Total sales increased +4.5% to £872m (£835m in FY23) in H1 as Dunelm continued to take market share and grow its active customer base (+4.2%), increasing the transaction frequency of existing customers by +1.1%.
PBT increased by +4.8% to £123m.
Dunelm reports that it is pleased with trading so far in H2, and that customers have been "resilient" but the consumer outlook remains uncertain.
The retailer's PBT expectations for the full year are unchanged (£202m), and in line with the market expectations.
CEO Nick Wilkinson comments: “In the past six months we have kept our customers front of mind, ensuring our broad offer has value at its core whilst also expanding our ranges, introducing new styles, and improving the experience across our store and digital channels.
“This has been particularly important in a more difficult trading environment and has resulted in another strong sales performance combined with market share gains. Despite ongoing pressures on consumers, we are encouraged by the wide variety of new customers shopping with Dunelm, and existing shoppers also coming back more frequently. Alongside the positive sales performance we have delivered a very strong gross margin, which is testament to our tight operational control and the inherent strength of our business model.
“As we move towards spring and customers look to freshen up their homes, our specialist proposition continues to resonate strongly and, in a dynamic retail environment, we are relentlessly focused on evolving and investing in our business to ensure we remain relevant to further increase our broad appeal. We have never been more excited about our future as we build trust in our offer and identity as the Home of Homes.”
In furniture, Dunelm says its Carmen swivel chair is selling well, having been featured in this month’s House Beautiful magazine. Dunelm expects outdoor living to move into focus as the days get longer and people increasingly use their outdoor space as an extension of their living space.
Dunelm says its is carefully managing its good/better/best pricing hierarchy – in furniture, for example, developing its ranges of sofas, sofabeds and upholstered chairs, introducing new fabrics and sizes, and making most of its products available for five-day delivery.
At the start of the year, the retailer announced plans to increase the rate of new store openings. It is on track with those plans, having opened four stores in H1, including both traditional superstore and smaller formats, and across a range of location types.
