Dunelm has refused to nudge up full-year profit expectations despite hailing “strong sales growth” in the first half of the year.
The homewares giant reported a 4.5% jump in sales to £872m for the 26 weeks ending December 30, 2023. For the second quarter, sales jumped 1% year on year to £483m against very strong comparatives.
The digital percentage of total sales also jumped two percentage points in the first half of the year to 36% of all transactions.
Dunelm said it was “confident that we are continuing to gain share in a market which has been characterised by volatile week-to-week trading patterns, particularly through Q2, reflecting the ongoing pressures on consumers’ discretionary spend”.
Despite all this, Dunelm said its financial outlook remains unchanged.
The retailer said that growth in the half was driven by consumer demand for “our consistent, outstanding value proposition” and, while it was “conscious that the outlook for consumer spending remains unpredictable… we are confident that we can deliver further market share gains and retain our tight operational grip on costs”.
Chief executive Nick Wilkinson said: “The breadth of our range and outstanding value of our proposition continues to be well received by customers, resulting in a strong sales performance for the first half despite a tough market backdrop.
“Consumers remain under pressure and are actively seeking true value at all price points. Our customer offer and positioning as the ‘Home of Homes’ resonates particularly well in this environment, and we are confident we have continued to gain market share. At the same time, our strong operational grip continues to help us navigate the difficult environment and manage our margins.
“Supporting our communities remains at the heart of Dunelm and I would like to thank all our colleagues and customers for making our recent Delivering Joy campaign our biggest ever, donating an incredible 125,000 gifts to local good causes during the Christmas period.
“Looking ahead, we remain excited about the compelling opportunity for growth for our business. We have continued to execute at pace on our strategic plans, opening four new stores over the first half of the year, while continuing to expand our ranges and improve our digital offer.
“Our new spring collections look fantastic in store and are being really well received by customers as we reach the end of our winter Sale, leaving us well placed to make further progress in the months ahead.”