Dunelm sales soar as CEO warns of significant headwinds

Dunelm said that total sales increased in the third quarter of fiscal 2022, adding that customers responded well to its winter sale.
Gross margin was expected to be “broadly similar” to the prior full year and guidance for profit-before-tax was kept the same.
// Dunelm sees an uplift in sales as its customers prepare for summer
// Total sales in the three-month period ended March 26 rose 69% to £399 million

Dunelm said annual profit would match market expectations while its boss warned of increasing financial pressures on shoppers.

Sales at the homeware retailer rose 69% to £399m in the three months to 26 March from a year earlier and 40% from the third quarter of 2020.

Year-to-date total sales were up 37% on a two-year basis, with continued strong growth in store sales and digital sales, which more than doubled compared with levels two years ago, it said.


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Total sales for the year to date for the 2022 financial year hit £1.1bn

The business added that customers responded well to its winter sale despite a hit in the final three weeks of the quarter due to the Omicron wave of the coronavirus.

Gross margin was expected to be “broadly similar” to the prior full year and guidance for profit-before-tax was kept the same.

Dunelm’s chief executive Nick Wilkinson said: “It has been another good quarter for Dunelm with sustained growth across all of our homewares categories, particularly as customers ready their homes and gardens for the summer.

“Whilst the macro environment remains uncertain, with significant headwinds and increasing pressures on the consumer …the resilience of the Dunelm business model and the ability of our colleagues to adapt quickly to changing circumstances give us confidence in our plans and we remain well placed to continue to grow market share.”

Wilkinson highlighted sustained growth across all homewares categories at the retailer, with customers readying their gardens and homes for the summer months.

“Performance has been strong across all channels and our new facilities for e-commerce and furniture fulfilment are now fully operational, which will enhance our multi-channel proposition, whilst providing the capacity for further growth,” he added.

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