Homeware retailer Dunelm (DNLM) has a new chief executive, but John Browett didn't have the magic touch in navigating the unusually warm Christmas weather. Total like-for-like sales still grew 3.9 per cent during the second quarter at Dunelm, but this was given a timely boost by the inclusion of eight days of promotional activity, compared with just two the year before. Therefore, on an underlying basis, like-for-like sales actually dipped 0.8 per cent for the 13 weeks ended 2 January 2016.
Mr Browett called it "a reasonable outcome" and said he has higher hopes for a strong second half. First-half profits are likely to be protected by the earlier timing of the winter sale and robust gross margins, but second-quarter top-line growth came in at the bottom end of consensus expectations.
Dunelm plans to open three more stores before the year-end, which should take total new store openings to six and the store estate up to 152 for FY2016. The medium-term target remains 200 superstores across the UK. Interim results are due on 10 February 2016.
