“The core of Dunelm’s business strategy is sound, but needs to adapt”, Dunelm chief executive Nick Wilkinson told shareholders today after the retailer revealed it had faced a “difficult and disappointing” financial year.
Pre-tax profits rose from £92 million a year before to £93 million, with revenue of £1.1 billion in the year to June 30.
However, underlying profits fell for the second year in a row – down almost seven per cent year-on-year – as Dunelm continued to grapple with costs associated with its acquisition of Worldstores in 2016.
Underlying pre-tax profit came in at £102 million for the year, compared with £109.3 million for the year before.
“We have seen profits fall in our last two financial years and we have identified a number of issues and opportunities to improve performance of the core Dunelm business,” Wilkinson said.
“We need to evolve to a market-leading multichannel offer…the core of Dunelm’s business strategy is sound, but needs to adapt.
“In the near term, we have a number of self-help opportunities to improve profitability and cash generation after a difficult and disappointing FY18. I am determined that we grasp these opportunities quickly so as to return to profit growth.”
Across the financial year Dunelm opened 10 new stores, including one relocation, adding 6.11 per cent more space to its portfolio.