Last checked at 
(Alliance News) - Dunelm Group PLC on Thursday posted a healthy second-quarter sales rise, though like-for-like growth slowed from the first-quarter's 36% surge.
The Leicester-based homewares retailer added that not being classed an essential retailer during UK lockdown measures means the outlook for the rest of its financial year is uncertain.
Shares in the company were down 7.3% at 1,202.00 pence each in London on Thursday morning, the worst mid-cap performer.
In the second quarter ended December 26, Dunelm's sales rose 12% year-on-year to GBP360.4 million from GBP322.4 million. Digital accounted for 40% of sales during the period, compared to 21% a year earlier. Digital sales include Dunelm's home delivery and click & collect services.
On a like-for-like basis, second quarter sales rose 11%, slowed from the first quarter's 36% growth.
"Throughout the quarter, consumer demand for homewares remained buoyant, and when our total retail system, including stores, was fully open, we performed significantly ahead of the market. Our online home delivery business has more than doubled since the same period last year as we continue to enhance the digital customer experience and ramp up our operational capabilities," the company explained.
"Click & Collect has remained popular with customers, equating to an average of 30% of prior year comparable store sales during periods of closure."
For the whole of the first half, sales rose 23% to GBP719.4 million from GBP585.0 million.
"The Covid-19 pandemic continues to impact our operations. Currently, all 174 stores are closed to customers, with all but five stores still able to operate a Covid-secure and contactless click & collect service. Home Delivery services continue to operate as normal," Dunelm added.
Dunelm also updated on port disruptions and "global container shortages" which added difficulty to the arrival of goods from Asia. The company explained that typical delays are now only two to three weeks.
For the first half, Dunelm expects to report pretax profit of roughly GBP112 million, a 34% hike from GBP83.6 million a year earlier.
"The outlook for the second half of financial 2021 remains uncertain given that the majority of our stores are currently closed to customers and there is a lack of clarity on when the restrictions will be lifted. As a result, we are unable to provide meaningful guidance for the full year outturn," the company added.
"During the restricted store trading period, we anticipate that click & collect and home delivery services will continue to be permitted. At this level of restricted operations, the group will make a modest weekly loss given our fixed cost base and the decision not to claim Job Retention Scheme support."
On Tuesday, John Lewis Partnership temporarily suspended click-and-collect services at its department store chain.
Dunelm on Thursday added that it has added Arja Taaveniku to its board as a non-executive director, effective February 15.
Taaveniku was formerly global business director at ready-to-assemble furniture giant Ikea.
By Eric Cunha; ericcunha@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
