"Robust" first-half trading at Dunelm
New superstore openings have helped Leicester-headquartered Dunelm up first-half revenue while pre-tax profit is expected to top £50m.
Total half-year revenue at soft furnishings business grew by 8.8 per cent, after 11 superstore openings, one of which was a relocation from an existing superstore unit. The company said it expected to post pre tax profits of £52m for the first six months of the year.
In a trading update ahead of its interim results for the six months to 31 December, Dunelm said like for like sales for the half year grew by 1.1 per cent.
Within this, like for like sales growth in the second quarter was 3.8 per cent, which the company said in part reflected the more difficult trading environment in the weeks immediately preceding Christmas 2010, when snow was estimated to have slowed sales over the quarter.
"Dunelm has achieved robust trading results in a very demanding retail environment, and has continued to gain market share on a like for like basis," said chief executive Nick Wharton.
"We have also made significant progress on our longer term development plan, not only delivering a very ambitious store opening programme over the last quarter, but also making fundamental improvements to our on-line offer that have been well received by customers.
"The combination of satisfactory trading and a disciplined approach to operating costs means that the board anticipates that profit before tax for the half year will be approximately £52m.
"We remain cautious about the impact of the UK consumer environment on our trading in the near term. Nevertheless, with eight further store openings already committed, and with our 'Simply Value for Money' proposition resonating with a wide range of customers, we remain confident in the future growth prospects for the business."
