RE: Nice read.15 Feb 2023 07:49
Reuters) - British homeware retailer Dunelm Group Plc (LON:DNLM) reported a lower half-year profit on Wednesday as inflationary pressures and a cost-of-living crisis in the UK hurt its margins.
Still, the company declared a special dividend of 40 pence per share after sales in the six-month period ended Dec. 31 rose 5%.
Households in Britain will likley tighten their belts this year as prices of everything continue to rise, leaving customers to shift in what they buy and where they buy from.
Dunelm, which runs more than 179 stores across the UK and a digital platform, still expects its full-year profit to beat market forecast of 176 million pounds ($213.07 million), but warned that the consumer outlook remains unpredictable.
"While forecasts remain unchanged given consumer uncertainty, we see more upside than downside risk," analysts at Peel Hunt said in a note.
Gross margin for the period was down by 170 basis points.
The company, which sells furnishings ranging from cushions and bedding to kitchen equipment, said profit before tax was down about 17% for the half year at 117.4 million pounds from year-ago levels.