Dunelm Group PLC (LSE:DNLM) reported a fall in first-half pre-tax profits as it warned the outlook remains unpredictable.
Profit before tax fell 16.6% to £117.4mln in the 26 weeks to 31 December 2022 compared to the same period a year earlier, reflecting the impact of the timing of its sale, strong post-Covid comparatives and inflation, according to a statement.
Total sales were up 5% to £835mln, with active customers 5.7% higher, and shopping frequency 4.8% higher, on the same period 12 months earlier.
The homeware retailer said that, due to tight commercial discipline and operational grip, it was able to deliver a gross margin of 51.1%, although this was 1.7% lower than the first half of the fiscal year 2022.
Despite the unpredictable outlook, full-year profit before tax expectation remains unchanged, with current analysts’ expectations of £176mln, with a range of £131mln to £188mln.
"Much like during the pandemic, our customers, colleagues and the communities we operate in will remember how businesses behaved when times were tough, and we are confident that our approach of offering outstanding value and choice for all will enable us to - once again - emerge from this challenging period stronger than ever,” said chief executive Nick Wilkinson.
Dunelm declared an interim dividend of 15p, compared to 14p in the first half of the fiscal year 2022. It is also paying a special dividend of 40p to return to target leverage range of 0.2× - 0.6× net debt:EBITDA.