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Dunelm resumes dividends as online sales bolsters profit in H1
StockMarketWire.com
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Homewares retailer Dunelm resumed its dividend payments after reporting a jump in profit as strong online sales offset the impact from store closures in Q2 owing to Covid-19 restrictions.
For the 26 weeks to 26 December 2020, pre-tax profit rose by £28.8 million to £112.4 million as total sales jumped 23% to £719.4 million.
Gross margin expanded by 50 basis points to (H1 FY20: +120bps) as a result of sourcing gains and a lower proportion of discounted sales
Digital sales grew by 111% in the period and represented 35.0% of total sales, up from 20.4% last year.
The company resumed dividends with an interim of 12.0 pence, citing its 'strong H1 performance and confidence in the medium-term outlook.'
'Given the uncertainty as to when Covid-19 related restrictions will be lifted, we are unable to provide meaningful guidance on the outlook for the full year,' it added.
'However, to date in the current quarter, we have been covering approximately 70% of our prior year sales through our home delivery and Click & Collect10 services. At this level of sales, we are making a modest weekly loss.'
Story provided by StockMarketWire.com
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