Dunelm stays comfy in ‘challenging’ retail market
Retailer Dunelm has reported steady results navigating what it describes as a “challenging” retail market.
The Leicester-based homewares specialist has also announced that chief executive Nick Wilkinson will step down after seven years in the role.
Wilkinson, who turns 60 next year, said it is “the right time to step away from full-time executive life”. He will stay on until a successor is in place.
Dunelm’s revenues were up 2.4% to £894m for the 26 weeks to December 28, with digital sales growing by three percentage points to 39%.
Despite the tough market conditions, Dunelm maintained stable profits, with pre-tax profit edging up to £123m and a gross margin of 52.8%.
The company also expanded its store presence in inner London and Ireland after acquiring Home Focus.
Dunelm remains cautious about the retail climate but noted that early trading in the second half of the year has been encouraging, with full-year profit expectations unchanged.
Nick Wilkinson, chief executive officer said: “Our performance over the first half reflects the growing attraction of the Dunelm offer for a wide range of customers and the quality and resilience of our business model. Amidst a challenging retail backdrop, those attributes have helped us deliver increased sales, a strong gross margin, and both customer and market share growth.”
The Board has begun searching for his successor, considering internal and external candidates.
Alison Brittain, chair of Dunelm, said: “Nick has been a tremendous leader for Dunelm and amongst his many achievements, he has successfully guided the Group through a global pandemic, driven a step-change in the digital offer, established strategic capabilities across the business, including in tech and data, and maintained the unique, entrepreneurial culture which makes Dunelm so special.
“Nick will continue to lead the business over the coming months as we transition to a new CEO, maintaining a focus on delivering long-term, sustainable growth for all stakeholders.”
