Dunelm warns of lower first-half profits after summer heatwaves hammer homeware sales across Britain

Homeware retailer Dunelm has warned that first-half underlying pre-tax profits will fall short of the prior year after "exceptionally warm weather" wiped around 3% off total sales in the first six weeks of its new financial year. Chief executive Clo Moriarty said trading has since picked up, with sales climbing to roughly 4% growth across the seven weeks through September 26. The retailer has kept its full-year guidance unchanged, counting on a strong peak season. Dunelm has already eliminated 95 central roles as part of a drive to strip £100 million from its cost base.

Sales recovered enough to push the quarter to overall growth of 1.1%, though like-for-like sales still edged down 0.8%.

Dunelm's three-year turnaround plan targets savings by 2029 through restructuring and simplifying product ranges.

Moriarty said 'early signs are encouraging' and expressed confidence in the retailer's long-term growth opportunity.