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(Alliance News) - Dunelm Group PLC on Thursday said it is on track to meet market expectations for profit after seeing sales growth in the first half of its financial year.
The Leicester, England-based homewares retailer said sales in the first half of the year ending June 30 rose 4.5% to GBP872 million from GBP835.0 million a year ago, driven by customer demand.
For the second quarter, sales grew 0.8% to GBP482 million from GBP478 million in the second quarter of financial 2023.
The digital percentage of total sales also rose by two percentage points for the half-year as well as for the second quarter, to 36% and 37% respectively.
Dunelm opened three new stores during the second quarter, taking the total of stores to 183. It added that it remains on track to achieve its full-year store opening plans.
The retailer 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 [the second quarter], reflecting the ongoing pressures on consumers' discretionary spend".
Looking ahead, Dunelm said its full-year pretax profit expectations are in line with company-compiled market consensus of GBP202 million, within a range of GBP199 million to GBP207 million.
Chief Executive Officer 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.
"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, whilst 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."
Shares in Dunelm fell 1.0% to 1,030.41 pence each in London on Thursday morning.
By Sabrina Penty, Alliance News reporter
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