Dunelm on track for 2023 despite fall in profits
In the last six months of 2022 Dunelm reported a 5% increase in sales to £835m, 43% up from pre-pandemic profits.
Despite this, pre-tax profit fell by 17% to £117.4m from £140.8m. However, Dunelm claimed to expect this as the result of inflation, sale timings and in contrast to the high demand they received post-pandemic.
The retailer still expects to meet analysts’ expectations with a pre-tax profit of £176m in 2023 although consumers spending is ‘unpredictable’ in the wake of the cost-of-living crisis.
Dunelm’s chief executive officer Nick Wilkinson, said: “Much like during the pandemic, our customers, colleagues and the communities we operate in will remember how businesses behaved when times were tough, and we are confident that our approach of offering outstanding value and choice for all will enable us to – once again – emerge from this challenging period stronger than ever.”
Dunelm announced a 15p per share dividend and a special dividend of 40p. The retailer also said it had gained 160 basis points in market share to almost 7% of the £23m UK homeware sector.