Dunelm Group plc, the UK's leading homewares retailer, has announced its interim results for the 26 weeks ended 30 December 2023. The company reported a strong performance, with total sales increasing by 4.5% to £872.5 million compared to the same period in the previous year. Digital sales accounted for 36% of total sales, representing a 2-percentage point increase from the previous year. The gross margin also saw a significant improvement, rising by 160 basis points to 52.7%.
The company's profit before tax (PBT) increased by 4.8% to £123.0 million, and the interim dividend per share saw a 6.7% increase. Dunelm also declared a special dividend per share of 35p. The interim results highlighted a strong sales growth, increased market share in homewares and furniture markets, and a 4.2% growth in active customers, along with increased transaction frequency.
Dunelm's CEO, Nick Wilkinson, emphasized the company's focus on customer-centric strategies, value-driven offers, and expanding product ranges to drive sales growth and market share gains. The company also opened four new stores during the period, bringing the total to 183. Additionally, Dunelm's 'Home of Homes' brand platform was launched, and the company donated over 125,000 Christmas gifts to local causes through the 'Delivering Joy' campaign.
Financially, Dunelm demonstrated a strong free cash flow generation of £91.1 million and maintained a tight operational grip on costs. The company's gross margin improvement was attributed to promotional discipline while offering outstanding value. Despite the uncertain consumer outlook, Dunelm expressed satisfaction with the trading in the second half and reiterated its profit expectations for the full year.
Dunelm remains committed to investing in increasing its broad appeal while maintaining operational efficiency. The company's CEO expressed confidence in the future, stating, "We have never been more excited about our future as we build trust in our offer and identity as the Home of Homes."
The company will be hosting an in-person presentation for analysts and institutional investors, as well as a webcast and conference call with a Q&A session to discuss the interim results in detail.
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