Dunelm Group plc (LON:DNLM) provided more details on its strong trading performance at the end of last year, saying profit before tax for the first half will up 16% to around £83mln.
Growth at the FTSE 250 furniture, cushions and curtains retailer is being driven by consistent improvement in its online sales offer, having launched a new digital platform during the second quarter.
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In the 13 weeks to 28 December, total like-for-like (LFL) stores rose 1.2% higher revenue at £265mln, while online jumped 32% to £47.7mln.
Total group sales grew 6% to £322mln, while gross margin improved by 110 basis points in the quarter, thanks to sourcing gains and lower product markdowns, while management decided not to offer Black Friday or pre-Christmas discounts.
Net debt at the end of the period was £68mln, with a special £65mln dividend paid during the first half.
Peel Hunt kept its forecast of full-year adjusted profit before tax unchanged at £139mln although profit guidance for the first half was £1mln higher than estimates.
“A pick-up in consumer confidence following the election and Brexit disruption offers upside potential on top of management’s growth plans,” analysts said in a note.