Dunelm records 17% profit decline

Pre-tax profits at Dunelm dropped to £117 million in the six months to 31 December compared to nearly £141 million during the same period of 2021.

While profits were down by around 17 per cent, sales were up by five per cent during the six-month period.

Overall sales at the British homewares retailer were 43 per cent higher than pre-pandemic levels.

Dunelm said that a nearly 15 per cent decline in operating profits reflected its summer sale and pent up demand after stores were reopened during the comparative period.

The results come after the retailer published a sales boost of nearly a fifth to £478 million during its second quarter.

The home furnishing brand said that higher sales during the quarter, which were 48 per cent higher than pre-pandemic levels, were driven by strong growth both in store and online.

"We are all learning to live in a new, complex and rapidly evolving economic reality,” said Nick Wilkinson, Dunelm's chief executive, commenting on the new results. “Recognising this, our focus has been on ensuring that we continue to offer outstanding value to our savvy customers through a proposition which is committed to quality, at the right price, across an expanding range of relevant products."

The company warned that while so far customers have been resilient, the consumer outlook remains "unpredictable".

The company expects further inflationary cost pressures, which saw higher operating costs during the 26-week period, over the coming months.

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