28 May 2024, 11:22
By Furniture News May 25, 2018

Dunelm delivers downbeat trading update

Following a stronger performance across first three quarters of its financial year, Dunelm experienced trading conditions in Q4 which "have been materially more challenging than had been expected, within a soft homewares market".

As a result of reduced footfall to stores, LFL store sales are down -4.7% in the quarter to date.

LFL online sales in the same period are up +43.7%, resulting in total LFL sales of +0.1% in the quarter to date.

Non LFL online sales (WorldStores, Kiddicare and Achica) have continued to reduce, as expected, partly reflecting the disposal of the Achica business. 

The retailer currently expects total FY sales to be in the region of £1050m, an increase of approximately +10% YoY. Underlying profits are likely to be moderately below those delivered last year.

Chief executive Nick Wilkinson says: "We have seen an unexpectedly challenging start to the fourth quarter, with continuing softness in the homewares market and reduced footfall to our stores. We are making good progress on our strategic plans to be a truly multichannel retailer and further strengthen our customer offer. We will learn from recent trading and I remain optimistic about our ability to deliver strong sales and profit growth in the future."

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