Dunelm set to hit higher end of profit range amid sales rise
British homewares retailing giant Dunelm has forecasted today that its annual profit will be at the higher end of its range, raising its expectations on the back of improved sales.
Management has said that full-year profit before tax will be at the upper end of the £124m – £126 range announced last month.
Total like-for-like (LFL) revenue for the fourth quarter increased by 15.4 per cent, boosted by a combination of a stronger underlying performance and weak comparisons from the previous year.
LFL store revenue in the fourth quarter jumped 12.1 per cent while online revenues rose 37 per cent.
Neil Wilson, chief market analyst at Markets.com, said: “Dunelm continues to defy the broader retail malaise. Pricing is vital here. People always need some soft furnishings; they just don’t necessarily want to pay a premium and Dunelm offers price-conscious consumers a lot of options on all of the essentials…Dunelm is also delivering on margins as it folds Worldstores into the group.
Nick Wilkinson, Dunelm’s chief executive, said: “In the year that Dunelm turned 40, we are delighted that both new and existing customers continue to respond positively to our evolving offer. The strong growth in the final quarter, and the year as a whole, demonstrates that in a rapidly changing marketplace, the broad appeal of Dunelm’s purpose ‘to help everyone create a home they love’ is resonating well.”
He added: “In the short-term, we remain cautious about the uncertain political climate and the impact it may have on consumer spending, but expect to make further progress in the year ahead and are confident about the group’s longer-term prospects.”