Dunelm raises profit forecast for second time

Dunelm Group has announced it has continued to see “strong trading” across its business and has decided to raise its profit forecast for the second time this year.

Since its last update on 10 April 2019 the home furnishings retailer said it has experienced “very good year-on-year total like for like growth”, particularly in May and June, reflecting both the soft comparator period and the unseasonably favourable weather conditions this year.

As a result, it said its board currently expects profit before tax for the year to be in the range of £124-126m up from £102m the previous year.

Back in April Dunelm announced it expected to report full year profit before tax “slightly ahead” of the top of the range of current analysts’ forecasts after it 12.5% rise in like-for-like revenue during Q3 attributed to strong growth in online sales.

At the time Nick Wilkinson, Dunelm’s chief executive, said: “We are delighted that customers continue to respond well to our improving homewares offer as we help them create a home they love. The strong growth in the third quarter reflects our ongoing focus on attracting more customers to the brand and giving them more reasons to shop with us through great product and service. Our performance was also buoyed by a positive homewares market.

“Our multichannel proposition is improving all the time and we are excited about the opportunities ahead of us as we continue to invest in and develop our digital capabilities.”

Dunelm added it would provide further details in its scheduled Q4 and year-end update set to be released on 10 July.