// Dunelm expects full-year profits will smash expectations after strong sales growth
// Total sales surged 59% in the 7 weeks to March 28, compared to same time in 2019
// Profits are expected to be over £148m compared with the £128m-£134m forecast by City analysts
Dunelm has said full-year profits will smash City expectations after seeing sales soar in the wake of store reopenings, and as Britons refurbish their homes ahead of summer.
Shares in the furniture and homewares retailer raced more than seven per cent higher after its second profit upgrade in just over a month.
It comes after Dunelm saw total sales jump 59 per cent in the seven weeks since March 28, against pre-pandemic levels two years ago.
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It added that sales have “performed significantly” ahead of the wider market since stores reopened on April 12, with growth online remaining solid.
The impressive performance in its fourth quarter so far means Dunelm now expects pre-tax profits to be more than £148 million – far higher than the £128 million to £134 million expected in the City.
The retailer had already upped its annual profit outlook in early April, before shops reopened.
“This high sales growth reflects the strength of our customer proposition and a variety of other factors, including pent-up demand following the extended store closure period, a buoyant homewares market and some benefit from the unseasonably cold spring weather,” Dunelm said.
Demand for homewares and DIY products has rocketed since the start of the Covid-19 pandemic as Britons stuck at home with time on their hands have focused on housing and garden renovations.
with PA Wires
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