Dunelm expects full-year profit drop despite 4th quarter boost

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Dunelm

Dunelm is anticipating a dip in full-year profit despite significant revenue and like-for-like sales growth in its fourth quarter.

The homewares retailer said it expects pre-tax profit for the full year to July 1 to come in between £109 million and £111 million, down from the £128.9 million recorded last year due to an “uncertain consumer environment” since the Brexit vote.

Like-for-like store sales also fell 2.4 per cent over the year, with overall comparable sales down 0.5 per cent.

However, sales were up 8.5 per cent to £955.6 million, boosted by Worldstores which Dunelm recently acquired.

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

However, in its fourth quarter Dunelm saw total revenue grow 17.7 per cent to £240 million and like-for-like sales rise 3.8 per cent.

The preliminary report comes after the retailer warned in February that costs would rise due to the Brexit-induced sterling depreciation and the subsequent rise in import costs.

“We’ve seen a good quarter of trade with positive like-for-like sales growth and a very strong online performance. Encouragingly, we continue to take market share,” Dunelm chief executive John Browett said.

“We continue to invest in the business for the longer term to improve our customer proposition and infrastructure and, despite an uncertain consumer environment, we go into the next financial year with some good momentum.”

Browett hoped the Worldstores acquisition would lead to a “massive leap forward” for Dunelm’s online and store offer.

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