Adds background throughout, share price reaction, analysts comments

Feb 11 (Reuters) - British homeware retailer Dunelm Group's DNLM.L CEO Nick Wilkinson is to retire after seven years in the role, the company said on Tuesday as it also reported flat half-year pre-tax profit, citing weak consumer spending.

Since Wilkinson joined the company as CEO in 2018, Dunelm has significantly increased its market share through the expansion of value-focused products and seasonal sales.

The company's shares, which have risen more 70% during his tenure, were down 1.6% to 955 pence in early morning trade.

"We expect this $(CEO)$ news to be met with some disappointment from investors," JP Morgan analysts said in a note.

Wilkinson, 58, plans to retire from full-time executive duties.

Dunelm said its profit before tax grew a mere 0.2% to 123.2 million pounds ($152.40 million) for the six months ended December 28, against a challenging retail backdrop and a cautious consumer.

Rising costs from higher minimum wages and taxes in Britain have fuelled concerns about price hikes and job cuts, denting consumer spending.

Dunelm said it was "encouraged" by early trading in the second half of its fiscal year 2025 and kept its profit forecast unchanged, in line with market expectations.

The retailer is expected to log profit before tax of 209 million pounds for the year, according to a company-compiled analysts consensus.

"Whilst management has done well to control opex, today’s results affirm our view that Dunelm will struggle to reaccelerate top line growth going forward," analysts at Panmure Liberum said in a note.

Dunelm said that it was "firmly set" on reaching its medium-term target of 10% market share and also declared a special dividend of 35 pence per share.

($1 = 0.8084 pounds)

(Reporting by Raechel Thankam Job; Editing by Subhranshu Sahu and Susan Fenton)

((RaechelThankam.Job@thomsonreuters.com;))