Dunelm ups FY guidance after strong final quarter
Profit before tax is now set to be slightly ahead of the current forecast of £188m
Dunelm has seen full-year revenues rise by 6% to £1.64bn, after a period of “robust” growth in its final quarter, where sales hit £381m despite higher cost prices and rising inflation.
Following a “continued robust sales performance, strong commercial disciplines and tight operational grip on costs”, the furniture retailer has raised its profit outlook, with profit before tax set to be slightly ahead of the current forecast of £188m.
Over the year, full-year sales were nearly 50% higher than FY19, and digital sales now make up 36% of total sales, up from 20% in FY19.
Despite a “challenging” trading environment, the group said it continued to see good sales momentum in the fourth quarter, where it reported “particularly strong” volume growth.
The group noted its product offer continued to “resonate strongly” with customers throughout the quarter, with cooler weather driving sales of its bedding and rugs ranges, while its Summer Living collections, in particular garden furniture and decorations, performed well in the warmer weather towards the end of the period.
CEO Nick Wilkinson said: “The breadth and relevance of our product offer has continued to resonate with our home-loving customers over the last quarter of the year. This has been reflected in our strong financial performance despite the challenging broader consumer backdrop.
“Against this backdrop, our commitment to value is stronger than ever. During the quarter we lowered prices on over 1,000 lines, and our customers were also able to take advantage of great offers in our Summer Sale.”
He added: “We have a strong business model, with committed colleagues and suppliers, who strive every day to improve our customer proposition. We continue to focus on further strengthening our product mastery, developing our stores, enhancing our digital channels, and building out our marketing ecosystem, in order to create an even better experience for our customers.
“With these improvements to our customer proposition and business capabilities we see a compelling opportunity for sustainable and profitable growth and are confident about the future.”