Dunelm expects higher sales volumes to drive profits next year, as its sales grew by 5.5% to a record £1.64bn.
In its preliminary results for the 52 weeks to July 1, 2023, the homewares retailer posted a 7.8% drop in profit before tax to £192.7m, which it blamed on the tightening on operational controls and the impact of cost inflation.
Nonetheless, profits managed to beat average analyst expectations of approximately £188m.
Despite “unpredictable” consumer behaviour, Dunelm said it is “pleased” with early trading in its new financial year.
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The retailer, which has 172 stores across the UK, also grew its customer base by 2.8% as its decision to pass on cost reductions on over 1,000 products bode well with shoppers feeling the pinch.
Chief executive Nick Wilkinson said: “In a period of extensive economic uncertainty, we have maintained our focus on enhancing our customer proposition, expanding our offer whilst staying fully committed to value and making every pound count.
“This has clearly resonated well with our customers, enabling us to continue growing both sales and market share. As ever, our amazing colleagues have been at the heart of this performance and I thank them all for their knowledge, personality, commitment and enthusiasm.
“As we manage the ongoing challenges, it is crucial that we do not lose sight of our longer-term ambitions. We are committed to raising the bar on value and joy for our customers and continuing to invest where we see good returns, so that we can seize the various opportunities ahead.
“We are excited about our future growth opportunity and more confident than ever that our commitment to value and tireless focus on improving the experience for our home-loving customers will leave us well placed to deliver sustainable growth in the future.”
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