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(Sharecast News) - Homewares retailer Dunelm said it expected annual profits to be above expectations as consumers sought value for money and stocked up on warm bedding and heated airers amid the cost of living crisis.
The company on Thursday said second-quarter sales were up 18% to £478m year on year for the 13 weeks to December 31, with customers flocking to buy items like thermal curtains to mitigate soaring energy costs.
Pre-tax profits are now forecast to be above a current company-compiled consensus average of analysts' expectations of £172m, with a range of £131m-186m.
"We saw growth both in stores and online, with digital sales making up 35% of total sales in the quarter, 2 percentage points higher than the same period last year. Digital sales growth was particularly strong in the late autumn and run-up to Christmas," the company said.
"Customers have enjoyed shopping our 'Winter Warm' ranges as they find innovative ways to manage rising heating costs," said chief executive Nick Wilkinson, as shoppers stocked up on essential items to beat the cold.
Susannah Streeter, senior analyst at Hargreaves Lansdown said Dunelm had been "adeptly controlling costs which has kept prices competitive".
"The range of goods sold at its vast stores in retail parks and online, cater for differing budgets while still offering value. People may not have been able to buy big items to freshen or refurbish the home, but they've been making do with cheaper makeovers to hunker down for the winter, closing their new thermal curtains on darkening skies.''
Reporting by Frank Prenesti for Sharecast.com
