Dunelm hails strong interim results as profits and sales jump

For the 26 weeks to December 26, Dunlem reported its pre-tax profits grew 34% to £112m, after the retailer had committed to returning £14.5m to the government from the Job Retention Scheme. 

The retailer said total sales jumped 23% to £719m, despite store closures in the second quarter. 

Digital sales for the period soared 111%, while total active customers grew 4.4%, predominantly acquired through Dunelm’s digital channels. 

The retailer finished the period with a net cash position of £141m, compared with net debts of £68m for the same period last year. 

Free cash flows were also up substantially year on year to £98m. 

Hailing Dunelm’s strong trading period, chief executive Nick Williamson said he had “never been more confident about the future” of the business. 

“In light of another strong performance, I would like to express my sincere thanks to the whole Dunelm team, and our committed suppliers, who have continued to work tirelessly throughout these extraordinary times to ensure the highest safety standards for ourselves and our customers, and also for their dedication and commitment to continuing to improve our customer proposition,” he said. 

“Sales were particularly strong in the first quarter, before we had to navigate the various restrictions which impacted the remainder of the period.

“These restrictions have become more severe in the second half of our financial year, with all but one of our stores currently closed, although we continue to serve customers through our digital channels, which have significantly advanced during the last year.

“Beyond the near-term uncertainty, we have never been more confident about the future. Dunelm is a market leader with a challenger brand mentality, in a large and growing segment. We have a clear runway to grow active customers and their frequency across our total retail system and to realise our long-term ambitions.”