20 May 2024, 10:11
By Furniture News Sept 04, 2019

Profits up as Dunelm hits 40

Dunelm has reported "a strong performance" for the year to 29th June, highlighting total LFL sales growth of +10.7% (7.7% in-store and 35.1% online).

Profit before tax was £125.9m (up +23.4%) reflecting higher sales, improved gross margins and better operational control. 

Efforts towards growing brand awareness helped drive a +8.5% increase in unique active customers, and there are further plans in progress to enhance Dunelm's multichannel customer experience.

Dunelm is targeting a material increase to its online-only ranges, with plans under way to add a net 6000 products to its online-only ranges in FY20, many of which will be own-label products. Some of these online-only products will be displayed in-store and will be available to order for home delivery. The retailer's furniture offer is also set to strengthen with further own-brand options and extended colour choices on bestselling products.

Dunelm says it will continue to extend its geographic reach alongside online developments, and expects to open three to five new stores (including relocations) each year.

CEO Nick Wilkinson comments: "As Dunelm celebrates its 40th anniversary, we are pleased to have delivered a strong performance during the year, with an improvement across all our customer, operating and financial metrics. In particular, the strong LFL revenue growth, both in stores and online, demonstrates the progress we are making with our multichannel proposition whilst maintaining the breadth and depth of our specialist customer offer in homewares.

"These results reflect our focus on the core Dunelm business and we see further opportunities to develop our Customer 1st plans, through extending product choice and value, improving our customer experience enabled by technology, and bringing more people to the brand.

"Recent trading performance has continued to be strong, reflecting both weak comparatives in the prior year and continued market share growth. However, we remain cautious about the full year outlook due to increased Brexit uncertainty and specifically the impact it may have on consumer spending as we enter our peak period. 

"Looking to the future, I am excited about the opportunity to grow our business as we enhance and extend our specialist and multichannel offer, build on our market leading position and fulfil our purpose of helping everyone create a home they love." 

Paula Vennells was appointed to Dunelm's board as a non-executive director (NED). Paula led the Post Office for seven years, and is also a NED at WM Morrison Supermarkets, chair of the Imperial College NHS Healthcare Trust, and a NED of the Cabinet Office.

According to Global Data, Dunelm now has an 8.7% share of the homewares market (up 0.6% YoY).

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