Dunelm like-for-likes up 1.7% after fall in its final quarter

Homewares retailer Dunelm recorded a 12.2% surge in sales to £677.2m in the year to June 29 driven by 14 new store openings in the period.

In its fourth quarter like-for-likes fell 2.8%, which Dunelm said was due to strong comparatives last year when like-for-likes soared 10.4% because of the “favourable” weather. Total sales increased 6.4% to £159.3m.

The board anticipates that pre-tax profit will rise 12.3% to £108m.

Gross margins for the year are estimated to have improved by 40 basis points, while margins in the quarter jumped 80 basis points. Dunelm said the fourth quarter benefitted from a cleaner stock position as it cleared older stock in its winter sale.

Dunelm chief executive Nick Wharton said: “With plans in place to develop further our compelling customer proposition, and with a significant opportunity for future growth from both new stores and multichannel still in front of us, the board remains confident in the overall prospects for the business.”

Dunelm added that it is also investing in its in-store customer service and its Dunelm at Home consultation service. Future growth will be supported by its investment in recruitment, improved systems, and multichannel growth.

The retailer said it aims to grow its UK superstores to 200. It currently now has 126 superstores and has signed four new leases, resulting in eight new planned stores but these are likely to open in the second half of the current financial year in contrast to other years.

Dunelm said its online sales grew in the year and sales comprised 4% of the total, increasing to 4.5% in the final quarter.

It added that when its new fulfillment centre comes online in October it will see natural growth through a “significant” increase in the lines on offer for home delivery ready for Christmas.