Dunelm Group has announced updates on trading for the 13-week period ended 28th December 2024, and for H1.
Total sales of £894m in the first half were up +2.4%, with +1.6% sales growth delivered in Q2, in "a challenging market", with digital participation up 3ppts to 40%.
Dunelm says its furniture categories performed particularly well, from sofa collections to smaller items such as dining chairs and coffee tables. H1 saw strong sofa sales, with a positive reaction to the Beatrice range extensions (in particular snugglers), with striped versions growing over +900%.
Hosting at home over the festive period was a key theme for Dunelm, with sofabed sales up over +30% and strong sales of its Emily folding dining chairs.
The business also celebrated the opening of its first inner London store in the quarter at Westfield London, and acquired Homefocus Group Ltd in Ireland, giving it a platform in a new geography via the retailer's existing footprint of 13 small stores.
Dunelm continues to focus on its store opening programme, and anticipates opening five new superstores in the second half of FY25.
In addition, in December, Dorma was recognised as a Royal Warrant Holder, specifically as a supplier of Linen Drapery and Soft Furnishings to the Royal Household. Established in 1921, Dorma showcases a long and rich heritage in quality British design.
Gross margin increased 10bps YoY in H1, the retailer saying it maintained a strong operational grip on input costs while offering "exceptional customer value".
In terms of outlook, Dunelm expects PBT to be within the range of market expectations for FY25 (the company-compiled consensus average of analysts’ expectations for FY25 PBT is £213m, with a range of £207-£217m).
CEO Nick Wilkinson says: “We’re pleased with our performance in the first half – we are growing sales and volume, with customers again responding well to the value and choice we offer across our ranges.
“At the same time, we’ve made significant strategic progress across multiple initiatives which are helping us to improve our attractive, specialist offer and continue to gain market share. We have taken our first steps outside the UK with the acquisition of 13 stores in Ireland, opened our first inner London store in Westfield, and made further improvements to our online customer experience which is contributing to continued strong digital growth.
“As we move into the second half of FY25, we have successfully launched our Winter Sale which is being well received by customers seeking amazing value across a wide choice of relevant products for the colder months. As we navigate this challenging environment, we see even more opportunities to harness our unique business model, raise the bar on our proposition and fulfil our ambitions as The Home of Homes.”
The retailer adds that it is mindful of the impact of the Autumn Budget announcement on its business, suppliers and customers: "As a large employer, with over 11,500 colleagues, we have previously highlighted the impact of ongoing wage inflation. Whilst the National Living Wage increase was largely anticipated, the increase in employer National Insurance Contributions is an additional cost headwind. Initiatives to drive productivity across the business are under way, and as these initiatives mature, we anticipate mitigating the upward pressure on costs over the medium term."
