Dunelm increased sales and market share in the 26 weeks to December 27 2008, in what the company describes as “a significantly declining market for homewares”.
The out-of-town specialist homewares retailer grew sales 2.3% to £201.8m, from £197.4m in 2007, although like-for-like sales were down 5.6%.
Operating profit was also down 5.4% to £26.1m (2007: £27.6m) but pre-tax profit edged up 0.2% to £27.3m (2007: £27.2m). Operating margin remained at 12.9%.
Commenting on the results, chief executive Will Adderley said: “In a significantly declining market for homewares, our first half performance was a satisfactory result and we continued to gain market share. ‘Simply value for money’ has been Dunelm’s philosophy for many years and we believe that is more appealing than ever in today’s environment.
“Despite the recessionary background our recent winter sale was very successful, contributing to strong like-for-like sales growth in the first eight weeks of the second half.”
He added that he expected to see the tough trading conditions continue but said that as a debt-free and cash-generative business, Dunelm was well placed to trade successfully through an extended downturn.
The company opened three new superstores in the period, and three more are planned for this financial year. Dunelm now has 92 stores, branded Dunelm Mill, of which 79 are out-of-town superstores.