Homeware Retailer Dunelm Sees 19.4% Increase in Pre-Tax Profits
- 19.4% increase in profits before tax to £83.6m
- Operating profit up 23.9% to £87.6m
- Like-for-like revenue growth of 5.6%
- Total revenue growth of 6% driven by new store openings
- Furniture sales increased by 42%
- CEO Nick Wilkinson: ‘We remain focused on operational improvements and creating value for stakeholders’
Homeware retailer Dunelm has reported a strong half-year performance, with profits before tax increasing by 19.4% to £83.6m for the period ended 28 December 2019. Operating profit reached £87.6m, up 23.9%, due to higher sales and improved gross margin delivery, as well as a £1.3m benefit from IFRS 16 adoption. Like-for-like revenue increased by 5.6% compared to the strong comparative period in 2019 which saw an increase of 7.8%. Total revenue growth was 6%, driven by new store openings and growth across most product categories, including a 42% rise in furniture sales. CEO Nick Wilkinson said, ‘We have made good progress over the first half, following a strong performance last year, which is reflected in the significant growth delivered in both sales and profits.’ He added, ‘We remain focused on operational improvements across all areas of the business and creating value for stakeholders.’
Factuality Level: 10
Factuality Justification: The article provides accurate information about Dunelm’s financial performance, including specific numbers and growth percentages across various categories. It also includes quotes from the CEO that support the positive outlook for the company’s future.
Noise Level: 2
Noise Justification: The article provides relevant information about the company’s financial performance and CEO’s comments on future growth opportunities without any irrelevant or misleading content.
Financial Relevance: Yes
Financial Markets Impacted: Dunelm’s stock price may be impacted by these financial results
Financial Rating Justification: The article discusses an increase in profits, operating profit, and total revenue growth for the homeware retailer Dunelm, which is relevant to financial topics as it pertains to a company’s financial performance. Additionally, the potential impact on the company’s stock price due to these results suggests that financial markets may be affected.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.
www.retailsector.co.uk