Sunday, September 24, 2017

Sales up but like-for-likes slip as Dunelm endures “volatile” environment


Dunelm’s third quarter results published today has indicated a 2.2 per cent slip in total like-for-like sales, which chief executive John Browett put down to “trading in a volatile retail environment”.

However, the homeware retailer’s total sales for the 13 week period ending April 1 went up by 11.4 per cent to £255.1 million.

Meanwhile total revenue, excluding Worldstores which Dunelm acquired during this period, rose by one per cent to £231.3 million.

In its online business, Dunelm recorded a 21 per cent increase in home delivery sales in the quarter.

The retailer also opened two new stores since the last trading update, bringing its estate to 159, as well as a new warehouse to improve its supply chain.

Browett believes the latest trading update shows that Dunelm has “continued to outperform the homewares market”.

The company said in a statement that the “homewares market remains in decline”, which began in its fiscal fourth quarter last year.

READ MORE: Price rises at Dunelm to go ahead after “softer” than usual trading update

It added that a late Easter could have an impact on like-for-like sales.

“With Easter being later this year, we expect approximately 1.5 per cent of like-for-like sales to move from the third to the fourth quarter,” Dunelm stated.

“This broadly nets off with the 1.7 per cent of like-for-like sales that moved from Q2 to Q3 as a result of the timing of our winter sale compared to last year.”

Browett added that expectations for the full year remained unchanged.

“We continue to focus on and invest in our long-term growth initiatives, to ensure that Dunelm’s low cost model remains a key strategic advantage allowing us to generate cash whilst maintaining our unique offer of value for money, an unrivalled range and great service,” he said.

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