Dunelm feels the heat – but stays upbeat
Summary
After recording a modest sales growth back in April, Dunelm Group plc , which has stores in both Cheltenham and Gloucester, has today revealed a fourth quarter trading update which shows total full-year sales that came in at a jaunty £1,825.5m. The figure marked a climb of 3.1% year-on-year, with full-year profit before tax expected to land in line with market consensus at £210m.
Details
That £1.825.5bn emerged after a total sales income of £1.7bn in the prior year, while data for Q4 (covering the 13-week period ending June 27 and addressing the full year), showed activity at the tills climbed 2.9% to £427.5m. The figure marked a noteworthy acceleration from growth in Q3 of 2.1% to the new Q4 marker of 2.9%.
Highlights for the three months included significant progress with the chain’s growth plans with the opening of a new 34,000 sq ft superstore in Kingston-upon-Thames, while an AI shopping assistant was also activated for visitors to the company’s app. The report said: “We have made good progress in the quarter, moving forward with immediate opportunities to underpin growth, whilst also developing our future plans.
We have continued our relentless focus on delighting our customers and are pleased to have seen our customer satisfaction score increase across the year, from an already high base.” Dunelm said its Summer Living drive traded particularly strongly with good sell-through across its ranges, while the latest growth figures were achieved despite the impact of two heatwaves that delivered two separate weeks of exceptionally warm weather, during which, in line with what the company witnessed elsewhere, Dunelm experienced lower levels of store footfall.
Speaking on the Kingston launch, Clo Moriarty, the new CEO at Dunelm, said: “Stores play a key role at the heart of our omnichannel model and we see a clear opportunity to continue growing our footprint.
We are looking forward to opening further stores and bringing our specialist offer to more customers across the UK and Ireland.” Ms Moriarty said of the report: “We have delivered a solid performance both in the quarter and across the year.
There is, however, much more we must do to build on our core strengths and realise our untapped potential.” From expanding and improving the store estate to continuing to innovate digitally, she said the firm was beginning to demonstrate what a bigger, better and bolder Dunelm can look like: “As the market leader in a large and highly fragmented market, we believe our best growth opportunities are still in front of us.” She added: “There’s hard work ahead but I’m confident in the plans that we have been developing over the past nine months and excited by what comes next.
We look forward to sharing more in September.” A further strategic update will come from Dunelm that month, alongside the final Full Year results.
What You Need to Know
We are looking forward to opening further stores and bringing our specialist offer to more customers across the UK and Ireland.” Ms Moriarty said of the report: “We have delivered a solid performance both in the quarter and across the year.
Report source: Punchline Gloucester