Dunelm has reported on its trading performance for its final quarter and for the financial year ended 2nd July 2016.
Total revenue for Q4 grew by 1.8% to £203.8m. Total LFL growth (combining LFL stores and home delivery) decreased by 0.6%, adversely impacted by a combination of an earlier Easter and the fact that the previous financial year included a 53rd week. Adjusting for these calendar impacts, underlying LFL performance was +2.9% for the 13 weeks to 2nd July.
Sales performance in the quarter were affected by a good Easter performance, the continued good growth in the online business – including a 16.8% increase in home delivery sales – and volatile trading through the quarter driven by changeable weather conditions and a general retail slow-down prior to the EU referendum.
The total number of stores trading at the period end was 152. Dunelm opened two new stores, in Nottingham and Sheffield, in Q4, both replacing existing stores. The retailer says it is committed to a further seven openings, including one in London, which are likely to take place in the next financial year.
Commenting on Dunelm's performance, John Browett, chief executive, says: "I am pleased to report another solid quarter of underlying growth, particularly given the more difficult retail trading environment which we believe has seen the homewares market decline in the quarter. Overall, therefore, we are continuing to increase our share of that market through our focus on delivering everyday value and excellent service for customers.
"The current uncertainty makes the future trajectory of the economy and consumer confidence unclear – however, we are confident that Dunelm, as market leader, will continue to strengthen its position through its low-cost operating model, everyday value, consistent cash generation and strong balance sheet.
"We remain focused on delivering key projects across the business and are excited about substantially improving the business for our customers, both in store and online, over the medium term, and continuing to develop Dunelm into a truly national homewares brand."
