Dunelm Group PLC (LON:DNLM) felt the chill of a harsher retail environment in its latest half year as underlying sales and profits fell.
Pre-tax profits dipped 11% to £67mln in the half year to December or by 26% to £55.9mln adding in the losses from the recently acquired online garden and childcare group Worldstores.
Even allowing for a hefty £9.3mln charge for taking Worldstores out of administration, profits fell by 7.2%.
Dunelm had already indicated some recovery in sales in the second quarter but the homewares chain still saw a 1.6% dip in like-for-like sales to £423mln as strong growth online failed to offset a 3% drop at its stores. Total sales rose 2.8% to £460.5mln.
John Browett, chief executive, said; “Trading was slightly softer than we would have liked due to a weaker market,” but it added market share and he said it was committed to the long term plans for the business.
“We have opened five new stores in the period and have more openings and refits planned in the second half.
“Our home delivery channel continues to perform well and our acquisition of Worldstores will accelerate our online capabilities and growth potential.”
The interim dividend rises by 8.3% to 6.5p.