Profits soar at retail giant as digital strategy pays off
Dunelm has seen its profits surge by 19.4 per cent to £83.6 million following the launch of its new digital platform, which the firm says has accelerated its ability to provide an innovative customer proposition.
The Leicestershire-based homewares giant also experienced like-for-like revenue growth of 5.6 per cent during the 26 weeks to 28 December, turning over £585 million as compared to £551.8 million during the same period last year.
In a statement to the London Stock Exchange, the company said it had grown its total number of active customers by 8.8 per cent, reflecting “improved brand awareness and consideration.”
Dunelm CEO Nick Wilkinson said: “We have made good progress over the first half, following a strong performance last year, which is reflected in the significant growth delivered in both sales and profits.
“We continue to build strong foundations for future growth. The successful launch of our digital platform accelerates our ability to innovate our customer proposition and we remain focused on operational improvements across all areas of the business.
“We also continue to broaden our customer base and following the successful sponsorship of ITV’s This Morning, which concludes in March, we are excited about our new sponsorship deal with Channel 4’s First Dates programme, starting later this week, which will enable us to reach more customers with the Dunelm brand.
“The third quarter has started well, with a successful Winter Sale across the total retail system. As a result, we expect full year FY20 profit before tax to be slightly ahead of the top of the latest range of analyst expectations7. We are monitoring the Coronavirus outbreak carefully. To date we have not assumed any material disruption to our supply chain or any financial impact in the year.
“We have plenty to look forward to over the remainder of the year as we strengthen the Dunelm offer and help more customers to create the home they love.”
