24 May 2024, 17:21
By Furniture News Jul 20, 2023

Strong Q4 vindicates retailer's commitment to value

Dunelm has reported continued robust sales, with profit expected to be slightly ahead of current market expectations, in a trading update covering its Q4 (ended 1st July 2023) and its full year.

In Q4, sales of £381m reflected full year sales growth of +6%, with FY23 PBT estimated to sit around £188m. Digital sales made up 39% of total sales.

Cooler weather drove sales of bedding and rugs ranges, while Dunelm's Summer Living collections – in particular garden furniture and decorations – performed well in the warmer weather towards the end of the period.

Across the year, total sales were up +6% YoY at £1639m. Compared to FY19, total sales were nearly +50% higher.

Dunelm added that it sees "very significant headroom to deliver further profitable growth, seizing the opportunity to raise the bar further on our customer offer, especially in terms of value" – and that it therefore means to continue to invest in digitalising and developing the business to improve both its customer offer and to make its operations more efficient.

Dunelm's next new store, in South-east London – its 180th – will open shortly.

CEO Nick Wilkinson comments: "The breadth and relevance of our product offer has continued to resonate with our home-loving customers over the last quarter of the year. This has been reflected in our strong financial performance despite the challenging broader consumer backdrop.

"Against this backdrop, our commitment to value is stronger than ever. During the quarter we lowered prices on over 1000 lines, and our customers were also able to take advantage of great offers in our summer sale.

"We have a strong business model, with committed colleagues and suppliers, who strive every day to improve our customer proposition. We continue to focus on further strengthening our product mastery, developing our stores, enhancing our digital channels, and building out our marketing ecosystem, in order to create an even better experience for our customers. With these improvements to our customer proposition and business capabilities we see a compelling opportunity for sustainable and profitable growth and are confident about the future."

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