Dunelm delivers ‘strong’ first quarter as full-price sales climb

The homewares retailer posted a 37% surge in sales in the 13 weeks to September 26 to £359m.

Online accounted for 30% of overall sales during the period, up 12% year on year.

Dunelm said sales across the whole quarter had been “materially ahead of expectations”. The retailer’s margin increased 100 basis points year on year during the period “mainly due to a lower proportion of discounted sales, reflecting strong demand, as well as sourcing improvements”.

The retailer said it expects its full-year margin to be “slightly positive” barring further Covid-19 operational disruptions.

As a result of this strong sales momentum, Dunelm has said it will reimburse the £14.5m it received under the job retention scheme providing there isn’t a substantial impact on operations due to Covid-19 during the winter months.

The homewares specialist said it was too early in the financial year to give guidance despite its strong start due to “the significant uncertainty relating to further Covid-19 restrictions and the implications for the economic outlook”.

Chief executive Nick Wilkinson said: “We are really pleased with our very strong performance in the first quarter, with customers responding well to the Dunelm offer across all product categories, both in store and online.

“Recent months have seen homewares become even more relevant, as people spend more time in their homes up and down the country.

“Our colleagues and suppliers have worked really hard to ensure our value focused, market leading proposition resonates with customers. The strength in trading at this early point in the year is testament to their exceptional commitment and adaptability.

“While we remain cautious about the continued uncertainty in the wider market, the resilience and flexibility of our business model leaves us well positioned as we enter our peak trading period and we remain confident in our ability to grow market share and help even more customers create a home they love.”