Dunelm reports strong sales growth in the final quarter of FY24 (the 13-week period ended 29th June), with profit before tax expected to be slightly ahead of current market expectations for the year, and the company-compiled consensus standing at £200m.
Sales grew by +5% in Q4, with good performance from both store and digital channels. The full year saw sales growth of +4%, driven by volume.
FY gross margin is expected to be 170bps up YoY, benefiting from net freight tailwinds.
Dunelm's new store opening programme remains on track, with six new stores opened in FY24, including one relocation.
CEO Nick Wilkinson comments: “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 PBT to be slightly ahead of expectations.
“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 strong operational grip given ongoing wage inflation.
"Notwithstanding the continuing uncertainty in our markets, we’re both excited and confident in our plans."
