Dunelm has seen its pre-tax profits increase by 4.5% to £123m in the first half of the 2024 financial year, despite tackling what it has described as a "more difficult trading environment".

Sales at the homeware retailer also jumped by 4.5% in the same period to £872.5m, while the company recorded a growth of 4.2% in active customers.

Chief executive officer at Dunelm, Nick Wilkinson, said: "In the past six months, we have kept our customers front of mind, ensuring our broad offer has value at its core whilst also expanding our ranges, introducing new styles, and improving the experience across our store and digital channels.

"This has been particularly important in a more difficult trading environment and has resulted in another strong sales performance combined with market share gains. Despite ongoing pressures on consumers, we are encouraged by the wide variety of new customers shopping with Dunelm, and existing shoppers also coming back more frequently. Alongside the positive sales performance we have delivered a very strong gross margin, which is testament to our tight operational control and the inherent strength of our business model."

Dunelm, which is headquartered in Leicester and employs over 11,000 people, has 183 stores across the UK, offering both in-store and online retail, including home delivery and click and collect options.

Looking to the rest of the financial year, the retailer said it is "pleased" with trading so far and that its customers have been resilient, despite uncertainty in the consumer market.

The group stated that its profit before tax expectations for the full year are unchanged and are in line with the market, remaining at £202m for the full financial year, with a range of £199m and £207m.

Although the group expects its group margin to increase by 100 bps in the full financial year, it said that the rate of improvement is expected to slow in the second half, due to a combination of “combined headwinds of foreign exchange movements and lower freight benefits.

Dunelm also said it is managing the impact of ships taking longer, more costly routes as they avoid the Red Sea area.

Investment director at AJ Bell, Russ Mould, commented: "Having the right stock available at the right time for the right customer is key to being a successful retailer and is reflected in Dunelm continuing to capture market share. The company’s reference to attracting new customers suggests some people may be trading down from more premium outlets to Dunelm’s more affordable offering.

"The company has worked hard to enhance its online presence in recent years and it continues to see robust web-based sales. All in all, the impression you get from Dunelm is that this is a company which really understands its market and knows how to capitalise on emerging trends through product innovation."

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