Dunelm Group plc has reported a solid trading performance for the first half of FY25, despite a challenging market environment.
For the 26 weeks to 28 December 2024, total sales rose 2.4% year-on-year to £894m, with Q2 sales up 1.6% to £490m. Digital sales accounted for 39% of total revenue, up three percentage points, driven by improved online customer experiences and growth in Click & Collect.
Gross margin increased by 10bps year-on-year, reflecting disciplined pricing and operational efficiencies. Dunelm expects full-year gross margin to reach the upper range of its guidance at 51-52%.
Key strategic milestones included the acquisition of Homefocus Group Limited, introducing the brand to Ireland with 13 small-format stores, and the opening of its first inner London store at Westfield London. Dunelm also plans to open five new UK superstores in the second half.
CEO Nick Wilkinson commented:
“We’re pleased with our first-half performance, growing sales and volume while making significant strategic progress. With opportunities to further enhance our customer proposition, we remain focused on achieving our medium-term goal of a 10% market share.”
Amid rising cost pressures, including increased National Insurance contributions, Dunelm has launched initiatives to improve productivity and mitigate long-term cost challenges. Despite these headwinds, profit before tax (PBT) for FY25 is expected to remain within market expectations of £207m-£217m.
Looking ahead, Dunelm’s Winter Sale is performing strongly, and the retailer is confident it can continue to leverage its unique business model and strong market position to drive further growth.
