Homewares retailer Dunelm reported a 4.2% increase in like-for-like sales over the second quarter after seeing growth in its online business.
Total sales increased 11.8% during the quarter to reach £225m. Over the half, like-for-like sales increased 6.2% and total sales grew 14% to £406.4m.
The retailer opened six superstores during the half year and there was significant growth in the online business, including an increase in home delivery sales of more than 70%.
“I am pleased with our trading through our first half,” said Dunelm chief executive Will Adderley. “Whilst we were up against weak comparatives in the first quarter, this was not the case in the second quarter so like-for-like growth of over 4% in that period is a strong result - thanks to the hard work of our teams in stores and throughout the business.”
“My priority going forward is to achieve growth consistently from each of our channels, including our core superstore format. We are excited by the opportunities available to us both from stores and online and we will continue to make the capital and revenue investments necessary to seize them.”
Cantor Fitzgerald analyst Mike Dennis said the retailer should benefit from a recovery in both the housing market and consumer confidence. It “still has a great opportunity to improve gross margins, which were 49.5% in FY14, by growing own label and the amount of directly sourced product. It is also in the early stages of developing a multichannel platform with current focus on delivery speeds to consumers and infrastructure.”
The retailer also revealed that non-executive director Matt Davies has stepped down with immediate effect following his appointment as Tesco UK boss. Finance director David Stead also plans to retire in the autumn, having been in the role since 2003. Dunelm said the process of indentifying a successor has started and “a further announcement will be made in due course”.