Dunelm LFL Sales Growth Slows In 2H; Op Pft Seen Beating View

13th Jul 2010 07:28

LONDON (Dow Jones)--U.K. homeware retailer Dunelm Group PLC (DNLM.LN) Tuesday said comparable sales growth slowed in its second half, and was marginally negative in the final ten weeks of the fiscal, although it expects full-year operating profit to be slightly higher than market expectations. According to FactSet, Dunelm is expected to make a fiscal 2010 pretax profit of between GBP52.5 million and GBP75.5 million. Dunlem said the profit boost is in part due to a continued increase in gross margin on the year, following successful management of old stock during the second half. Over fiscal 2010 as a whole, Dunelm expects gross margin to rise 190 basis points on the year to 46.8%. Dunelm's sales growth slowed as more of its winter sale fell in the first half than in previous years. In the 26 weeks to July 3, total sales grew 10.9% to GBP238.6 million, slowing from 26% growth in its first half. Comparable sales ticked up 0.8% in the second half, much-reduced on growth of 15.4% in the first half. The firm--which trades from 94 superstores and 10 older format high street stores--expects the rate of comparable sales growth to slow during fiscal 2011, due to tax rises and spending cuts putting pressure on consumer spending. Nonetheless, it has signed leases for eight new stores that will open in fiscal 2011 and it said it is confident it can trade from up to 200 superstores in the U.K. -By Hannah Benjamin, Dow Jones Newswires; 44-20-7842-9298; [email protected] Order free Annual Report for Dunelm Group PLC Visit http://djnweurope.ar.wilink.com/?ticker=GB00B1CKQ739 or call +44 (0)208 391 6028 (END) Dow Jones Newswires July 13, 2010 02:28 ET (06:28 GMT)