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Dunelm reveal 1.7% LFL increases

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Homewares retailer Dunelm has revealed like-for-like sales are up 1.7% in its full year but sales fell in the final quarter due to poor weather.

The retailer recorded a 12.2% surge in sales to £677.2m in the year to June 29 and fourth quarter like-for-likes fell 2.8%. The firm claim it was due to strong comparatives last year when L-F-Ls 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.

The firm continues to expand its expansion of the store estate, with 14 new stores opening this financial year, bringing Dunelm’s UK superstore portfolio to 126.

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.”

It said that future growth will be supported by its investment in recruitment, improved systems, and multichannel growth.

Its online sales have also grown 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.

Published on Thursday 04 July by Editorial Assistant

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