Dunelm lfl sales fall

17th Feb 2011 07:22

Curtains to bedding retailer Dunelm posted an increase in half year revenue but like for like sales fell after a tough run up to Christmas. The out of town homewares retailer warned it, "faces uncertain consumer demand and rising costs".Like for like sales grew in the first quarter of the financial year but this growth fell away in the second quarter, not helped by the extreme weather in late November and early December, the group said. For the 26 weeks to 1 January 2011 like for like sales fell by 1.2% compared to strong comparative of 15.4% growth in 2010."In common with most retailers, we are facing a number of factors in our market which could affect both consumer demand and bought-in costs for a period of time," said deputy chairman Will Adderley.However he added, "We are confident that we can use our strong financial position, market leading proposition and entrepreneurial flexibility to navigate our way through this period and build an even stronger business for the long term."Pre-tax profit rose 5% to £48.5m during the half year period. Revenues rose 8.5% to £275.7m."After exceptional growth in sales and profits in the equivalent period last financial year, the most recent half year has been a period of consolidation. In this context it has been a substantial achievement for the business to record another profit increase as well as continuing its record of strong cash generation," Dunelm said.The interim dividend increased has been increased by 16.7% to 3.5p per share. Dunelm said the phased transition to new chief executive was now complete, with Nick Wharton appointed CEO with effect from today.