Dunelm Q3 sales surge 69% despite ‘significant’ headwinds
The board continues to expect that FY22 pre-tax profits will be in line with latest market expectations of £195m-£215m
Dunelm Group plc has reported its total sales surged 69% to £399m for the 13-week period ended 26 March 2022 (Q3) compared to £236.6m in FY21 with growth across all channels.
The group said its growth was achieved despite “significant” raw materials and freight cost increases, and ongoing supply chain disruption.
Overall, sales in Q3 are up 40% from the same period in FY20 as the final three weeks in that quarter were impacted by the beginning of the pandemic. Excluding those three weeks, total sales for the first 10 weeks of Q3 FY22 are up 31% on a two-year basis.
Additionally, year-to-date total sales are up 37% on a year-on-two-year basis, with continued “strong” growth in store sales and digital sales being more than double the level of two years ago.
Customers reportedly “responded well” to Dunelm’s winter sale held in the first few weeks of the quarter, with “strong” sales performance across most categories.
The board continues to expect that FY22 pre-tax profits will be in line with latest market expectations of £195m-£215m, with consensus of £207m.
Dunelm said that whilst the macro-economic outlook remains highly uncertain and there are “significant” pressures on UK consumers, the group remains confident in its proposition and opportunities to continue to grow market share.
The group is also working closely with suppliers to take actions to mitigate “significant” raw materials and freight cost increases, ongoing supply chain disruption and to ensure better availability for customers.
Nick Wilkinson, chief executive officer, 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.
“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: “Whilst the macro environment remains uncertain, with significant headwinds and increasing pressures on the consumer, our wide product range offers choice for every budget.”
