Dunelm profits to fall as heatwave hit sales in first half

Summarised from 2 outlets · Updated 15 Oct, 08:57 · Archive

Homeware retailer Dunelm said first half profits will be lower than a year earlier after summer heatwaves cut sales.

Homeware retailer Dunelm has warned that first half profits are expected to fall after heatwaves over the summer hit sales. The group said total sales fell by around 3% in the first six weeks of its new financial year because of the 'exceptionally warm weather', as it also faced tough trading and weak consumer spending. On a like-for-like basis, the group saw sales fall 0.8%.

The retailer flagged an improved performance in the following seven weeks to September 26, with total sales rebounding with about 4% growth. This left total sales up 1.1% for the quarter. Chief executive Clo Moriarty said: 'I'm encouraged by the momentum we built as the quarter progressed, following the impact of the exceptionally warm weather.'

Dunelm kept its full-year guidance unchanged, expressing faith in recovery plans to boost trading over its peak season and second half. The retailer announced plans last month to strip around £100 million of 'unproductive' costs from the business as part of a new three-year growth strategy, following cuts to central teams of around 8%. The cost-cutting programme aims to make savings by the 2029 financial year through restructuring and changing internal processes.

How it is being reported

• Dunelm set for lower first half profits but flags recovery after heatwave hitThe retailer said total sales fell by around 3% in the first six weeks of its new financial year largely because of the ‘exceptionally warm weather’.Independent Business · 15 Oct, 08:25
• Dunelm set for lower first half profits but flags recovery after heatwave hitThe retailer said total sales fell by around 3% in the first six weeks of its new financial year largely because of the ‘exceptionally warm weather’.Evening Standard · 15 Oct, 08:25

In this story: Dunelm · Clo Moriarty

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