27 May 2024, 14:14
By Furniture News Apr 20, 2023

Dunelm reports "strong trading" in Q3

Dunelm has reported "strong trading, with expectations unchanged" for its Q3 (ended 1st April 2023), with broad-based growth across its categories, both in-store and online.

Q3 saw sales of £423m generated, up +6% YoY (or c.10% after adjusting for the timing of the retailer's winter sale, six days of which fell into Q2 this year). Digital sales accounted for 36% of the total (up from 35% in Q3 FY22).

Following a successful winter sale, the retailer saw a good response to its newly introduced designs this spring, as it refreshed its core product ranges and added to its Conscious Choice range of sustainably focused lines, complemented by relevant seasonal items.

The new stores opened this year, which include both larger and smaller formats, continue to perform ahead of the retailer's expectations, while its investment in digitalising the business is also delivering strong returns, says Dunelm.

Gross margin was "consistent with expectations", with gross margin for the full year expected to be c.50%.

CEO Nick Wilkinson comments: “We are seeing strong momentum in the business as customers continue to appreciate the quality and value across the Dunelm range, despite a challenging trading backdrop. This was apparent through our successful winter sale and the positive launch of our new ranges for spring and summer as customers look forward to longer days and outdoor living.

“As we continue to seize the many opportunities we see, we are investing for the long term and making good progress against our plans, which include the ongoing development and extension of our product ranges, building our customer data platform and optimising our marketing channels. These plans give us good confidence for ongoing success.

“Our core values continue to guide the business, and during the quarter we passed the £1m milestone in funds raised for our charity partner, Mind. I am particularly proud of our colleagues’ efforts to support our communities at such an important time.”

Dunelm concludes that, while the consumer outlook remains unpredictable, it remains focused on strengthening its customer offer "to provide unbeatable choice and value for every space, style and budget".

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