Dunelm like for like sales growth slows
Like for like sales growth slowed in the second half of the financial year and was marginally negative in the final ten weeks, reflecting strong comparatives in the prior year.
LFL sales grew 8% in the year to 3 July following a marked slowdown during the last six months to just 0.8% from 15.4% during the first half. They actually fell 1.9% in the final 13 weeks, reflecting strong comparatives with the previous year.
The pattern of sales growth was affected by a shift in the accounting calendar so that more of the winter sale fell in the first half than in previous years. Adjusting for this effect, LFL growth would have been approximately two percentage points lower in the first half, and two percentage points higher in the second.
Total sales rose 18.2% to £492.8m, with an improvement of 10.9% in the second half far less than the 26% reported in first. Fourth quarter sales dropped to £111.6m from £127.1m in the previous three months.
Will Adderley, Chief Executive, commented: “We are pleased with our trading performance over the last financial year. We remain as determined as ever to keep offering ‘simply value for money’ to more and more customers across the UK. I am particularly proud of the ways in which we have developed our offer over the last twelve months – including reinvigorating our furniture and storage departments, rolling out our arts & crafts section to more stores, piloting an exciting new version of our kitchen department, and launching the Dunelm gift card.
“We do not anticipate that it will be possible to maintain last year’s rate of like for like sales growth in the coming twelve months as consumer spending has to absorb tax increases, public sector cuts and, potentially, interest rate rises. We also think it will be hard to achieve further gross margin gains, with uncertainty over sterling and recent increases in freight costs affecting imported products.
