Dunelm, a leading name in the home furnishings industry, reported its recent success in the furniture market, as it outlines plans to distribute over £100 million to its shareholders.
Nick Wilkinson, Chief Executive Officer, commented: '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.'
Photo: Dunelm
A significant factor contributing to Dunelm's success is its commitment to customer convenience. The company now offers a five-day lead time on most furniture items, along with interest-free credit options for qualifying online customers.
Dunelm's market share in furniture has surged by 10 basis points to 2.1% in the six months leading up to December 30th. Additionally, its share of the homewares market has seen a substantial increase of 60 basis points, reaching 11.3%.
In a move to reward its shareholders, Dunelm has announced an interim dividend of 16p per share, totaling £32.3 million, along with a special dividend of 35p per share, amounting to £70.7 million. While this special dividend is slightly lower than the previous year's 40p per share, it remains a significant return for shareholders.
With sales for the period climbing by 4.5% to £872.5 million and gross margin improving from 51.1% to 52.7%, Dunelm's pre-tax profits have seen a notable increase of 4.8% to £123 million.
More information:
Dunelm
www.dunelm.com