Dunelm weathers wet summer as it eyes record annual profit
Homeware retailer Dunelm has weathered a wet summer to deliver strong sales across its product ranges, with the company now expecting to outstrip its forecast annual profit.
Over the three months to 29 June 2024, the London-listed retailer increased its total sales by five per cent on the same period last year, with revenue hitting £399m.
Dunelm said this had been driven by an increase in the number of items customers had purchased during the quarter, with its summer sale helping to drive volumes.
The retailer said it had recorded sales growth across all of its product categories, bar outdoor furniture. Sales in this division were hit by the wet weather.
As a result, the company predicted that its pre-tax profit for the year would be “slightly ahead” of the £200m currently forecast. Results are expected to be released in September.
Nick Wilkinson, CEO, said:”We delivered another strong performance in Q4, with continued volume-driven sales growth across both store and digital channels.
“Amidst ongoing consumer caution, our unrelenting focus on value and choice means the Dunelm proposition has continued to resonate with customers, and we saw both full-priced and discounted lines trade well during our summer sale period.
“Throughout the year, we grew sales and continued to exercise tight cost control in an environment of high inflation. Our strong gross margin performance means we now expect our 2024 profit before tax to be slightly ahead of expectations.
“Going into 2025, we have a significant opportunity ahead of us. We are finding quality sites for new stores, and are increasingly confident in our smaller format stores.
“We are also continuing to invest in both our digital offer and wider operations to support further market share gains. However, we will need to maintain strong operational grip given ongoing wage inflation.
“Notwithstanding the continuing uncertainty in our markets, we’re both excited and confident in our plans.”