Dunelm FY profits ahead of expectations amid strong Q4
PBT is now expected to be slightly ahead of current market expectations for FY24 at £200m
Dunelm has revealed it expects profits for the full year to be ahead of expectations after it saw a strong end to Q4.
The homewares retailer has seen its total sales for the year grow 4% to £1.7bn driven by volume despite a “challenging consumer environment”. PBT is now expected to be slightly ahead of current market expectations for FY24 at £200m.
The announcement comes as the retailer also shared that sales in Q4 increased 5% to £399m thanks to a “a good summer sale period in June”. Despite outdoor furniture experiencing softer sales due to the extended period of cooler weather, sales growth was “fairly consistent” across the group’s categories in the quarter.
Throughout the year, Dunelm said to have focused on further building its brand and customer offer as the “Home of Homes”. In Q4, the group opened a new store in Brighton and relocated its Edinburgh store to a “better” site, taking its total store openings to six for the full year.
The retailer also recently opened a new depot in Barnsley, replacing its existing facility with additional capacity to better serve its “Home Delivery Network”.
Nick Wilkinson, chief executive officer, 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 FY24 profit before tax to be slightly ahead of expectations.”
Wilkinson added: “Going into FY25, 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 a strong operational grip given ongoing wage inflation. Notwithstanding the continuing uncertainty in our markets, we’re both excited and confident in our plans.”
