Home furnishings retailer Dunelm has reported a strong second quarter with sales 18% higher year-on-year and 48% higher against pre-pandemic levels.
According to its latest trading update for the 13-week period ended 31 December 2022 and for the first half of FY23, total Q2 sales were up 18% to £478m.
Dunelm said that the performance reflects a strong quarter in which its Autumn and Winter product ranges proved particularly popular with customers. “We saw broad based growth across our categories and our Christmas offer sold well. Customers seeking ways to mitigate higher heating costs found outstanding value in our ‘Winter Warm’ assortment, as well as in products such as heated indoor airers,” the retailer said.
“We saw growth both in stores and online, with digital sales making up 35% of total sales in the quarter, 2ppts higher than the same period last year. Digital sales growth was particularly strong in the late Autumn and run-up to Christmas.”
As for the half year, total sales were up 5% to £835m. Dunelm said its profit guidance remains unchanged from its preliminary results announcement in September. The company compiled consensus average of analysts’ expectations for FY23 PBT was £178m, with a range of £130m to £193m. The current company compiled consensus average of analysts’ expectations for FY23 PBT is £172m, with a range of £131m to £186m.
Nick Wilkinson, Chief Executive Officer, commented: “We have delivered another strong performance and the relevance of Dunelm’s value offering has really come to the fore. Customers have enjoyed shopping our ‘Winter Warm’ ranges as they find innovative ways to manage rising heating costs. Our Christmas assortment also proved popular as customers prepared their homes for the festive period.
“It is a difficult time for many people in our communities, so we were delighted to significantly grow our ‘delivering joy’ campaign this year, resulting in over 60,000 Christmas gifts being donated by customers and colleagues to local causes.
“We are deeply conscious of the challenges which everyone is facing and remain focussed on making every pound count across our entire offer, so customers can feel confident in receiving outstanding value whatever their budget or taste.”