Dunelm lifts annual profits guidance after strong Q2
By Frank Prenesti
Date: Wednesday 12 Jan 2022
(Sharecast News) - UK homewares retailer Dunelm on Wednesday lifted annual profit guidance after a record performance in the 13 weeks to Christmas driven by online sales and higher margins.
The company reported sales of £407m in the second quarter, up 13% year on year and 26% higher than a than two years ago before the Covid pandemic struck.
Dunelm said full-year profit was expected to be "materially ahead" of market expectations of £181m. First-half pre-tax profit was expected to have jumped to £140m from £84m.
Digital sales penetration returned to a more normalised level of 33% in the second quarter as all revenue channels reopened after Covid curbs were eased.
"Growth was broad based, across nearly all our product categories, with a very strong performance in furniture reflecting better availability and extended ranges. With our stores fully open, our seasonal ranges also performed well," the company said.
Gross margin in the second quarter increased by 160 basis points compared to the same period last year, ahead of expectations, driven by higher full price sell through of seasonal ranges, the company said.
For the first half of the financial year, gross margin increased by 80 basis points, and as a result the company now estimated that full year gross margin would be better than previously expected, at around 30-to-50 basis points lower than full-year 2021.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN