Dunelm has announced its half-yearly results, with a surge in like-for-like sales and profits.
The homeware chain reported a 10.7% rise in pre-tax profits to £68.2m and like-for-like sales up 6.2% for the 26 weeks to December 27. There was significant growth in on-line business too, with home delivery sales up 76%
During the first half, six new superstores opened and six more are anticipated for the second half. Dunelm aims to expand its superstore portfolio from the current figure of 142 to about 200 with, it says, greatest potential in the south.
Dunelm chief executive Will Adderley commented: “Our focus is now emphatically on growth, the early results of which can be seen in the first half performance. We have set ourselves a new, medium-term goal of growing sales by 50%, with half of this coming from stores – improving sales densities in existing stores and rolling out new ones – and the balance coming from growth in the home delivery channel, including increased penetration in furniture.
“To achieve this, we have to keep investing in growth-driving activities, in capacity and in our senior team. In the remainder of this financial year we expect the benefits of top-line growth to be largely absorbed by these increases in operating costs, with a return to stronger profit growth next year reflecting the positive impact of the change in culture and strategic emphasis.”