Yahoo Finance Dunelm declares special dividend after profits rise for homewares retailer
Shareholders in Dunelm will receive a total of £103 million through dividend payments, the homewares chain said as it toasted sales and profits growth.
The payouts come through an interim ordinary dividend of 16p per share, up 7% from the first half a year earlier, as well as a £71 million special dividend of 35p per share.
The update was given as the FTSE 250 retailer’s chief executive Nick Wilkinson said: “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.”
In the first half to December 30 sales increased 4.5% to £872.5 million.
Pre-tax profits improved to £123 million from £117.4 million.
Wilkinson said strong performing categories during the period included sofas and dinnerware, while the group enjoyed a strong Christmas.
The firm added that it is pleased with trading so far in the second half, and said customers have been resilient “but the consumer outlook remains uncertain”.
Wilkinson pointed to factors that could help some shoppers, such as mortgage rates recently coming down.
He told the Evening Standard: “There are some green shoots but it is still a very challenging market overall.”
Nick Bubb, a independent retail analyst said: “In the current economic climate you wouldn’t think that customers would be rushing to buy new cushions and curtains, but Dunelm is gaining market share and cementing its position as “the Home of Homes” “.Looking ahead between five to 10 store openings are planned by Dunelm in 2024.
Wilkinson last month said: "We continue to see strong returns from stores and are becoming more confident in a variety of formats and sizes as we increase our footprint across the UK.”
