Dunelm sales rose in its second quarter and first half overall bolstered by a strong performance online, despite facing a “challenging market”.
Revenues rose 1.6% to £490m for the 13 weeks ended 28 December, and were up 2.4% to £894m for the first half overall. This was driven by a 3% uplift in online sales participation across both periods – as ecommerce represented 39% of total sales over the retailer’s first half.
Dunelm highlighted strong growth in click and collect sales as it further increased the breadth of its ranges and the proportion of products available to be collected in stores. It also noted furniture categories did particularly well during the period, highlighting “sofa collections through to smaller items such as dining chairs and coffee tables” as strong performers.
The furnishings giant noted it had made progress against its strategic goals, with improvements to its online customer experience, its first inner London store and 13 small stores acquired in Ireland.
Gross margin rose 10 basis points year-on-year during the retailer’s first half overall, which retailer attributed to “discipline both on promotional activity and across our ‘good, better, best’ value tiers.”
As a result, the retailer said it now expects its full-year gross margin to be in the upper half of its current guidance, standing between 51% and 52%.
Dunelm said it aims to open five new superstores during the second half of FY25.
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The retailer reiterated its full-year profit within the range of £207m to £217m.
Dunelm CEO Nick Wilkinson said: “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.”
He added: “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.”
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