Home furnishing giant Dunelm reported today record profits, as it managed to emerge unscathed from the impact of Omicron, supply chain issues and inflationary surges.
In the six months ended 25 December, Dunelm announced a £140.8m profits before tax, 25.3 per cent up on last year’s £112.4m. The group’s gross margin went up 80 basis points as a result of higher full price sales of seasonal lines, while sales increased by 10.6 and 36 per cent on FY21 and FY20 levels respectively.
“Together we have navigated another period filled with significant and evolving external challenges and delivered a very strong performance in the first half, with continued growth in customer numbers, further market share gains, record sales and particularly strong profitability,” Dunelm’s chief executive Nick Wilkinson said.
“When we announced our interim results in 2020, we were weeks away from the world being turned upside down. Two years later, we are moving forwards as a bigger, better business, with more capability, more resilience, more ambition, and delivering accelerated growth.”
As trading in the second half of the year remained positive, Dunelm’s board expects end of year results to be in line with analysts’ expectations of profits ranging between £198m and £218m with consensus of £206m.
“We look to the future excited, energised and eager to continue being our customers’ 1st choice for home,” Wilkinson added.
Commenting on the results, Edison Group’s consumer director Russell Pointon said: “The underlying confidence in this outlook is supported by this strong set of results, which signal Dunelm’s resilience against the wider challenges which have been plaguing the retail sector.”