Home furnishings and homewares retailer Dunelm has reported a growth in Q2 and first half sales as furniture delivers strong results.
According to its latest trading update for the 13-week period ended 28 December 2024 and for the first half, total Q2 sales rose 1.6% to £490m, with digital sales representing 40% of total revenues.
As for the half year period, total sales increased 2.4% to £894m, with digital sales representing a total of 38%.
Gross margin increased 10bps year-on-year in H1 with strong operational grip maintained on input costs alongside exceptional customer value. Dunelm added that it has made progress against its strategic goals, with meaningful improvements to its online customer experience, its first inner London store and 13 small stores acquired in Ireland. The retailer anticipates opening five new superstores in the second half of FY25.
“We believe that we have again gained market share, demonstrating the value, relevance and choice we continue to offer our customers,” Dunelm said.
“Digital participation was up 3ppts to 39% in the first half, as customers continued to respond well to the ongoing improvements we are making to our digital experience. Click and Collect sales grew strongly as we further increased the breadth of our ranges and the proportion of products available to be collected in stores.
“Our furniture categories performed particularly well, from our sofa collections through to smaller items such as dining chairs and coffee tables. Our growing range of products at outstanding price points, with attractive delivery options, continues to improve our proposition and resonate well with customers.
“In the quarter, we acquired Homefocus Group Limited in Ireland, giving us a platform in a new geography through an existing footprint of 13 small stores, where we are already selling Dunelm products. We have also brought Dunelm to inner London for the first time, opening our Westfield London store ahead of the Christmas ‘peak’ trading period. We are learning from these new ventures and are excited about the opportunities they provide.
“We also remain focussed on the opening of new UK superstores, and anticipate opening five in the second half.”
Looking ahead, Dunelm added that it expects pre-tax profit to be within the range of market expectations for FY25, a range of £207m to £217m.
Nick Wilkinson, Chief Executive Officer, commented: “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. 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.
“As we move into the second half of FY25, we have successfully launched our Winter Sale which is being well received by customers seeking amazing value across a wide choice of relevant products for the colder months. As we navigate this challenging environment, we see even more opportunities to harness our unique business model, raise the bar on our proposition and fulfil our ambitions as The Home of Homes.”
