Dunelm, the 海角视频 homeware retailer, said it saw a healthy rise in sales at the end of 2021 with margins up despite inflationary pressures.
The chain reported sales for the second half of the year at almost £800 million – up 11 per cent on a year earlier and up a third on the second half of 2019.
It now expects pre-tax profits for the six months of around £140 million, compared to £112 million a year earlier, and £84 million a year before that.
It said online sales now account for a third of all transactions within the business, double what they were pre-Covid, helped by people shopping from home during lockdown.
The Leicestershire-headquartered business said it saw growth across almost all product categories, with a very strong performance in furniture thanks to better availability and extended ranges.
It said: “With our stores fully open, our seasonal ranges also performed well.”
Gross margins, it said, were up ahead of expectations but there was a warning that some store prices would go up.
A trading update said: “We continue to expect that we will largely mitigate the impact of inflation on commodity costs and freight rates by working closely with our suppliers to create sourcing benefits, managing the mix of products across our price bands whilst maintaining choice throughout the range, and increasing retail prices where appropriate.
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“As stated previously, we feel that we are relatively well placed to address these challenges whilst continuing to focus on providing great value and quality for our customers.”
Dunelm was founded in 1979 as a Leicester market stall, selling ready-made curtains. The first shop was opened in Leicester in 1984, with the first superstore opening in 1991.
The business now has 176 stores and recently opened a new branch in a former Debenhams in Beverley, East Yorkshire.
Chief executive Nick Wilkinson said: “We are delighted with our ongoing strong performance, which demonstrates the growing appeal of our homewares offer and includes some standout contributions from our furniture and seasonal categories.
“I would like to thank our fantastic colleagues and supplier partners for their ongoing commitment to serving our customers in the face of continued Covid challenges and industry-wide supply chain disruption.
"Our integrated physical and digital shopping experience has transformed since we launched our new digital platform in October 2019.
“These advances have enabled us to reach more customers with our brand and specialist homewares product range, whilst also providing a much improved customer experience.
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“Our digital platform and capabilities also give us more confidence and ambition for the future.
"Whilst there are several macro uncertainties to be navigated, we feel well placed to continue to deliver profitable growth across all channels and grow market share as the first choice for home for 海角视频 home-lovers."
Russ Mould, investment director at stockbroker AJ Bell, said Dunelm had "smashed it out of the park yet again".
He said: “The pandemic has arguably been favourable to the business in some respects; we’re spending more time indoors and are therefore more likely to want to upgrade our furniture, bedding or curtains.
“A key plank of the transformation of Dunelm under chief executive Nick Wilkinson has been an improvement and expansion in online sales.
"That has really helped during periods when footfall in its stores has either been reduced or wiped out entirely thanks to restrictions or people’s reluctance to go out.
“The fact that Dunelm was able to boost profitability in the period despite cost pressures is testament to the quality of its product range and how it is resonating with consumers. It has also ensured good product availability by maintaining a high level of inventory.
“A key basic element of retailing is getting the right products in front of customers at the right time and Dunelm is ticking this box for now.
“And despite specialising in soft furnishings, Dunelm is not allowing itself to get too comfortable, continuing to invest in its digital capabilities.”