Dunelm has posted a rise in quarterly sales and is confident that full-year profits will come in at the top end of expectations.
The homewares specialist reported store like-for-likes up 12.1% in the fourth quarter to June 29, when online sales climbed 37%.
Total sales advanced 11.6% to £264.1m in the period when gross margin rose by approximately 240bps at group level. The core Dunelm business upped margin by 200bps “driven by better sourcing and a lower level of end of season clearance compared to the same period last year”.
In the full year, total group margin is expected to have improved by 160bps.
Dunelm chief executive Nick Wilkinson said: “In the year that Dunelm turned 40, we are delighted that both new and existing customers continue to respond positively to our evolving offer. The strong growth in the final quarter, and the year as a whole, demonstrates that in a rapidly changing marketplace, the broad appeal of Dunelm’s purpose ‘to help everyone create a home they love’ is resonating well.
“We continue to invest in the business, particularly in strengthening our digital capabilities and reaching more customers through our brand marketing initiatives.
“Looking forward, we see significant opportunity for continued growth both from our stores and online, while maintaining our improved operational discipline.
“In the short term, we remain cautious about the uncertain political climate and the impact it may have on consumer spending, but expect to make further progress in the year ahead and are confident about the group’s longer-term prospects.”
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