Dunelm annual profit to be slightly ahead of forecast after ‘strong’ fourth quarter
Homeware retailer Dunelm has posted increased fourth quarter and full year sales following volume-driven growth in its stores and online.
In the 13 weeks to 29 June, total sales climbed by 5% to £399 million after trade was boosted by the popularity of the retailer’s summer sale and customers responding well to new products.
Dunelm said sales growth was consistent across most of its categories, although trading in outdoor furniture was impacted by this summer’s cooler weather.
During the period, the retailer opened one new store in Brighton and relocated its Edinburgh shop to a better site. This took its total of new stores openings, including superstores and smaller format shops, to six for the full year.
Across the year to 29 June, total sales rose by 4% to £1.706 billion as the retailer drove top line growth through volume.
Nick Wilkinson, chief executive of Dunelm, said: “We delivered another strong performance in Q4, with continued volume-driven sales growth across both store and digital channels.
“Amidst ongoing consumer caution, our unrelenting focus on value and choice means the Dunelm proposition has continued to resonate with customers, and we saw both full-priced and discounted lines trade well during our summer sale period.”
Pre-tax profit to be ahead of expectations
Dunelm is expecting pre-tax profit for the 12 month period to be slightly ahead of current market expectations at the £200 million mark.
Looking ahead to the new financial year, Wilkinson said Dunelm has a significant opportunity ahead of it as it continues to open new stores and invest in its digital channel.
He added: “We will need to maintain strong operational grip given ongoing wage inflation. Notwithstanding the continuing uncertainty in our markets, we’re both excited and confident in our plans.”
