Dunelm has announced its interim results for the 26 weeks ended 28th December 2024. The retailer enjoyed sales growth of +2.4%, driven by volume, with total sales increasing to £894m (from £872m in H1 FY24). It saw another strong digital performance, with 39% of total sales generated through digital channels (up from 36% YoY), and says its market share increased to 7.8%, up 30bps on a calendar year basis.
The number of customers actively shopping with Dunelm grew by +4.3% in 2024, helping the retailer deliver a strong gross margin of 52.8% while maintaining its value proposition – meaning PBT increased by +0.2% to £123m.
The retailer expanded its store portfolio to inner London during the half, and also to Ireland, via the acquisition of the Home Focus business.
Looking ahead, Dunelm says it remains confident in its "advantaged business model" and is progressing with its strategic plans, "whilst staying mindful of a challenging sector backdrop and a cautious consumer". The group is encouraged by early trading in the second half, and PBT expectations for the full year are unchanged and in line with consensus.
CEO Nick Wilkinson, who this week announced his plan to retire (see related), says: “Our performance over the first half reflects the growing attraction of the Dunelm offer for a wide range of customers, and the quality and resilience of our business model. Amidst a challenging backdrop for retail, those attributes have helped us deliver increased sales, a strong gross margin, and both customer and market share growth.
“We have also pressed ahead with our strategy. Whether our customers prefer maximalist prints or neutral plains, the elevation of our product is apparent through the diverse range of styles on offer for all tastes, with quality once again endorsed through the awarding of a Royal Warrant to our Dorma brand. Our thriving total retail system is connecting that product with more customers, and we saw further growth in our increasingly personalised digital channels, as well as some exciting firsts for our store portfolio – we arrived in inner London at Westfield, acquired 13 stores in Ireland, and we will open our 200th store in the second half.
“As ever, whilst pleased with our results, we are eager to move faster and with greater purpose. Customers love Dunelm, but we can grow to become a destination for more customers, across more categories, more of the time. With our dedicated colleagues, who have shown incredible adaptability in a difficult trading environment, this gives us a renewed confidence in unlocking our full potential as The Home of Homes.”
In product, Dunelm introduced a bright and bold homeware range in partnership with ‘Queen of Colour’,Sophie Robinson. It describes the range – comprising over 200 pieces – as "a maximalist’s toolkit, allowing people to mix and match with confidence."
It also developed an exclusive new collection in collaboration with Holly Willoughby (pictured), which features floral patterns across bedding, curtains and cushions.
