British housewares retailer Dunelm raised its annual profit forecast on Wednesday after a record performance in the 13 weeks leading up to Christmas, thanks to online sales and higher margins.
The company posted second quarter revenue of £ 407million, up 13% year on year and 26% more than two years ago before the Covid pandemic.
Dunelm said profit for the full year is expected to be “significantly higher” than market expectations of £ 181million. First half profit before tax is expected to have jumped to £ 140million from £ 84million.
Digital sales penetration returned to a more normalized level of 33% in the second quarter, with all revenue channels reopening after Covid’s restrictions eased.
“Growth was strong, in almost all of our product categories, with a very good performance in furniture reflecting better availability and extended ranges. With our stores fully open, our seasonal lines have also performed well, ”the company said.
Second-quarter gross margin increased 160 basis points from the same period last year, ahead of expectations, due to higher full selling prices of seasonal lines, the company said.
For the first half of the year, the gross margin increased by 80 basis points and as a result, the company now estimates that the annual gross margin would be better than expected, at around 30 to 50 basis points below average. annual. year 2021.