This morning, Dunelm announced its preliminary results for the 52 weeks to 29th June 2024. Total sales increased +4.1% to £1.71b, despite the softer market, as Dunelm continued to take market share (to 7.7% in the combined homewares and furniture markets) and grow its active customer base (+5.1%).
It recorded a strong gross margin of 51.8% (from 50.1% in FY23), benefiting from net freight tailwinds and a tighter operational grip, and delivered growth across both stores and online, with digital sales now comprising 37% of its total sales.
Profit before tax increased +6.6% to £205m, and Dunelm opened six new stores (including one relocation), in line with plans during the year.
Looking ahead, Dunelm expects sales growth in FY25 to be driven by volume and further market share gains, and now sees a runway to grow the store estate by 5-10 per year in the medium term (to be evenly split between larger and smaller stores).
CEO Nick Wilkinson comments: “This strong set of results is testament to the hard work of our adaptable and committed colleagues. In a period when consumers faced inflationary pressures and competing demands for their disposable income, we have continued to raise the bar on the relevance and value we offer at Dunelm. The continued delivery of volume-driven sales growth and further share gains in this softer market underlines this, and the strength and resilience of our business model.
“We have made good progress with our growth plans, including the expansion of our store estate, building a faster and better digital experience for customers, and advancing our tech and data capabilities. As we evolve our strategic thinking in this changing environment, we are now even clearer on the areas which will help us to unlock our full potential as The Home of Homes.
“Whilst we are gradually seeing improvements to economic indicators, we are yet to see a meaningful change in consumer spending habits in our markets. Against this backdrop, and compared to a strong first quarter we have made a satisfactory start to FY25. Our plans gives us a clear pathway to reaching our next milestone of double-digit market share in the medium term, and we remain very confident in our ability to deliver long-term sustainable growth as a result.”
As Dunelm celebrates the 40th anniversary of its first store in Leicester, the retailer also notes that it is seeing some of the key interior trends from the 80s having a resurgence: "Primary colours like yellow, cobalt blue and emerald green are coming back in as customers become bolder and braver with their use of colour and embrace bright shades, cheerful spaces and bold graphics," states the retailer, which is also seeing customers opting for earthy tones, including browns, greens and tans.
