Essential reading for retailers and suppliers in the home improvement market

Dunelm reports strong LFLs in second quarter

Published: 16 January 2018 - Fiona Garcia

Homewares retailer saw like-for-like (LFL) sales rise by 3.4% to £255million in the 13 weeks ended December 30, with online LFL figures soaring 30.5% but profits are expected to take a dip in first half.

Dunelm opened five new stores during the quarter and recorded that total revenue grew by 13.6% to £297.5million. It delivered a strong online performance, delivering £26.2million in Q2 – up more than £6million on the same trading period last year.

This climb has been attributed to the group’s acquisition of online homewares specialist Worldstores in November 2016.

Chairman Andy Harrison said: “Continuing rapid like-for-like online growth, of 36.8% in the first half, coupled with passing the first anniversary of the Worldstores acquisition, has helped our online sales grow to 16.0% of total sales in the first half (18.5% including Reserve and Collect). We are well on the way to becoming a genuine multi-channel retailer.”

However, gross margins took a hit, with a decline of 180 basis points for the first half, which is expected to have an impact on profits for the period. The company put this down to the addition of lower-margin sales from Worldstores, as well as a higher level of seasonal and end-of-season products in the wider range. Dunelm is expecting some margin improvement in the second half, as core margins were said to be in line with the previous year.

Dunelm opened a total of nine new stores in the first half, including five in Q2, which takes Dunelm's portfolio 169 stores. No further stores are currently expected to open in this financial year.

Commenting on Dunelm's performance, chairman Andy Harrison said: "After a good first quarter, it is pleasing to see our sales momentum maintained... This performance is driving our continued market share gains.”

He added: “Overall, we remain on track, with good sales growth and market share gains, offset by margin mix. We are well positioned to deliver good full year profit growth, after a small reduction in the first half, largely due to the consolidation of Worldstores losses."




(Your email address will not be published)
Already Registered?
Sign In
Not Yet Registered?
Printable View E-mail Bookmark

What do you think?

The coronavirus (Covid-19) is affecting everyone and completely changed our way of lives for the foreseeable future. Small business owners and the self-employed have been hit particularly hard financially, with many not being able to work or having to close up completely. DIY Week is keen to learn how you are coping and to share this information with others who may well be in the same boat, so thank you for taking part in this survey.
How has your business been affected by the coronavirus (Covid-19) pandemic?

Latest reader comments

re: A guide to construction safety for home builders

Daniel Wood
Safety should always be the first priority. If followed properly, these precautions are all we need to tackle all unwanted accidents. I ...

re: Further Homebase closures ahead

Shaun Collorick
Cheltenham homebase has closing down signs outside, but not Gloucester homebase.... Yet!...

re: B&Q sales slide, as Screwfix decision to exit German market costs millions

B&Q bob
No surprises from us on the shopfloor management paralysed by fear of jobs and to weak to take chances so bumble around. Ranges boring, and ...

re: Further Homebase closures ahead

Miss l'a tesha gc Wilson
Please keep me updated regards all Store closures Thank you...

re: Graham Bell to head up B&Q as part of Kingfisher reshuffle

Peter Earl

Most read stories