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(Alliance News) - Dunelm Group PLC on Wednesday backed its full-year guidance, despite reporting a 17% drop in profit.
In the six months ended December 31, Dunelm reported a 5.0% increase in total sales to GBP835.0 million from GBP795.6 million a year ago. It noted that digital sales made up 34% of total sales.
However, pretax profit for the soft furnishings retailer fell by 17% to GBP117.4 million from GBP140.8 million.
Dunelm said this fall was expected, reflecting impact of sale timing and strong post-pandemic demand in the prior year, as well as inflationary impacts.
Leicester-based Dunelm also declared an interim dividend of 15 pence, up 7.1% from 14p a year ago. It also said it will pay out a special dividend of 40p, up 8.1 from 37p.
Looking ahead, Dunelm reiterated its full-year guidance, saying that it is on track to deliver full-year results in line with analyst expectations. The current company compiled consensus average of analysts' expectations for financial year 2023 pretax profit is GBP176 million, with a range of GBP131 million to GBP188 million. Pretax profit in financial year 2022 came in at GBP212.8 million.
The company did, however, note that the outlook remains "unpredictable" as consumers are still adapting to the new economic reality.
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."
Shares in Dunelm were up 1.0% to 1,181.00 pence each in London early Wednesday.
By Sophie Rose, Alliance News reporter
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