Dunelm ‘well on way to becoming genuine MC retailer’

Dunelm reports that comparable sales rose 3.4% in its second quarter, comprising the 13-week period ended 30th December. Helped by YOY online growth of 30.5%, revenue was up 13.6% to £297.5 million.

"After a good first quarter, it is pleasing to see our sales momentum maintained with total sales growth, and like-for-like sales growth, of 13.6% and 3.4% respectively in the second quarter. This performance is driving our continued market share gains,” says Andy Harrison, Dunelm Chairman. "Continuing rapid like-for-like online growth, of 36.8% in the first half, coupled with passing the first anniversary of the Worldstores acquisition, has helped our online sales grow to 16% of total sales in the first half (18.5% including Reserve and Collect). We are well on the way to becoming a genuine multi-channel retailer.”

Margins in the core Dunelm business were maintained in the first half, although there has been a sales mix impact on margins from the Worldstores acquisition and the higher participation of seasonal and end of season products. “Overall, we remain on track, with good sales growth and market share gains, offset by margin mix. We are well positioned to deliver good full year profit growth, after a small reduction in the first half, largely due to the consolidation of Worldstores losses,” says Harrison.

The homewares retailer opened five new stores in the quarter, including one relocation, bringing its total number of openings in the first half to a net nine, and its superstore footprint to 169. No further stores are pencilled in for this financial year.