Dunelm eyes first half profit rise

Homewares retailer Dunelm said it expects to post half year profit before tax in the range of 59m-60m pounds as it cautioned that sales growth in like for like stores will become much harder to achieve in the remainder of the current financial year.

The bedding, curtains and blinds retailer said total sales for the 26 week period to December 29th 2012 rose to £340.1m from £299.9m the year before. Like for like sales for the half-year increased by 2.2%.

Gross margin for the half year is expected to improve by 30 basis points compared with the prior year.

Commenting on Dunelm's performance Chief Executive Nick Wharton said: "Dunelm has delivered another strong trading performance in the last half year, continuing to gain market share on a like for like basis, while strengthening its customer proposition and adding 10 new superstores."

"As we annualise our exceptionally strong comparative performance in the final quarter of last financial year, we anticipate that sales growth in like for like stores will become much harder to achieve in the remainder of the current financial year."

"Nevertheless, with a significant new store growth opportunity and an exciting multi-channel agenda in place, the Board remains confident in the longer term growth prospects for the business."

CJ