Dunelm sees profit ‘materially ahead’ as it delivers record festive quarter

Dunelm sees profit 'materially ahead' after strong Christmas
Dunelm CEO - "We feel well placed to continue to deliver profitable growth across all channels and grow market share."
// Dunelm saw sales rise 13% to a record £407 million in the 13 weeks to Christmas Day
// The retailer said higher full-price sales of seasonal ranges helped boost margins

British homewares retailer Dunelm said on Wednesday its full-year profit was expected to
be “materially ahead” of market expectations after a record performance in the 13 weeks to Christmas.

The retailer reported sales of £407 million for its second quarter, 13% higher than a year ago and 26% higher than two years ago, which it said reflected “particularly encouraging growth from its stores”.

Dunelm, which has 176 stores and an online operation, said higher full-price sales of seasonal ranges helped boost margins by 160 points in the quarter.


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The retailer expects profit before tax for the first half of its financial year to be approximately £140 million, up from £112 million last year.

Chief executive Nick Wilkinson said: “We are delighted with our ongoing strong performance, which demonstrates the growing appeal of our homewares offer and includes some standout contributions from our furniture and seasonal categories. I would like to thank our fantastic colleagues and supplier partners for their ongoing commitment to serving our customers in the face of continued Covid challenges and industry-wide supply chain disruption.

“Our integrated physical and digital shopping experience has transformed since we launched our new digital platform in October 2019. These advances have enabled us to reach more customers with our brand and specialist homewares product range, whilst also providing a much improved customer experience. Our digital platform and capabilities also give us more confidence and ambition for the future.

“Whilst there are several macro uncertainties to be navigated, we feel well placed to continue to deliver profitable growth across all channels and grow market share as the first choice for home for UK home lovers.”

The business said that as long as there was no significant new Covid-19 related disruption it expected its full-year pretax profit to be materially ahead of market expectations.

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