Dunelm Group plc, the UK's leading homewares retailer, has released its trading update for the 26-week period ending on 30 December 2023. The company reported a 4.5% increase in total sales to £872 million for the first half, with a 1.0% growth in the second quarter. The digital sales mix also rose by 2 percentage points to 37%. The company's gross margin improved by 160 basis points in the first half, while it opened three new stores during the second quarter, bringing the total to 183.
The sales growth was driven by volume, and the company remains confident in gaining market share despite the challenging market conditions. Dunelm's cook and dine category saw strong sales, benefiting from improved ranges and successful Christmas product sales. The company's gross margin increased significantly, demonstrating its ability to offer value alongside disciplined promotional activity.
Strategically, Dunelm made progress by opening three new stores in the second quarter, reaching a total of 183 stores. The company also expanded its product ranges and continued to enhance its digital platform. The 'Home of Homes' brand platform was launched, and the 'Delivering Joy' initiative saw a significant increase in donations to local good causes during the Christmas period.
Looking ahead, Dunelm remains confident in its ability to deliver further market share gains and retain operational control over costs. The company's full-year profit before tax expectations are in line with market expectations. Nick Wilkinson, Chief Executive Officer, expressed confidence in the company's ability to navigate the challenging market environment and manage margins, emphasizing the strong sales performance and the compelling growth opportunity for the business.
In conclusion, Dunelm Group plc's trading update reflects continued sales growth, a strong gross margin performance, strategic progress, and a positive outlook for the future.