Both Dunelm and DFS have recorded strong results in the lead-up to Christmas as the homewares boom shows no signs of slowing down.
Dunelm has raised its profit guidance after a “record” Christmas trading period - total sales were up 13% year-on-year and 26% on a two-year basis to £407m in the 13 weeks to December 25.
The homewares retailer said that its stores performed particularly well, while its digital sales doubled against the comparative period pre-Covid, two years ago.
It added that growth was “broad-based”, with almost all product categories performing well, with particular rises in furniture and seasonal goods.
The retailer is currently investing in developing its fulfilment capacity, including a new ecommerce facility that opened during the period, and a furniture hub that is set to be fully operational in the third quarter.
Christmas sales powering growth
Dunelm chief executive Nick Wilkinson said: “We are delighted with our ongoing strong performance, which demonstrates the growing appeal of our homewares offer and includes some standout contributions from our furniture and seasonal categories.
“Our integrated physical and digital shopping experience has transformed since we launched our new digital platform in October 2019. These advances have enabled us to reach more customers with our brand and specialist homewares product range, whilst also providing a much-improved customer experience. Our digital platform and capabilities also give us more confidence and ambition for the future.
“Whilst there are several macro uncertainties to be navigated, we feel well placed to continue to deliver profitable growth across all channels and grow market share as the first choice for home for UK homelovers.”
Sofa specialists DFS also reported strong growth in its first half, with sales up 10% compared with 2019 in the 26 weeks to December 26.
DFS said that its order intake was strong throughout the period, with the post-Christmas Sales period also off to a good start.
The retailer said that its order bank for the second half is £200m more than pre-pandemic levels on a revenue basis, and it currently expects to meet profit guidance.
Chief executive Tim Stacey said: “I would once again like to thank all of our colleagues, who have shown tremendous spirit, resilience and commitment to our group to deliver such a strong start to the financial year.
“While the market remains hard to predict, we believe our scale, brand strength and integrated retail strategy will allow us to drive market share gains ahead of the competition.
”Looking ahead we will continue to invest in our digital platforms and our showrooms, our delivery network, our UK manufacturing capacity, and with expansion into other home categories, we are well-positioned to succeed.”
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