Home furnishings retailer Dunelm has reported a growth in top and bottom line figures as sales climbed 16%.
According to its latest update for the full year ended 25 June 2022, total sales rose 16% to £1.5bn, with digital sales accounting for £537m – more than 2.5x higher than pre-Covid levels when digital sales mix was 20%.
The full year digital mix of 35% was 11%pts lower than FY21, reflecting the fact that only home delivery and Click & Collect services were available when its store estate was closed for over one third of FY21.
Dunelm said: “Total sales includes significant market share gains, reflecting the strength of our total retail system and the substantial development of our digital capabilities and homewares proposition over the last three years.”
The retailer added that sales in the final quarter of the year were down 6% but slightly ahead of expectations.
“Strong sales in the comparative period were driven by pent-up demand after the re-opening of our stores in April 2021, following the third national lockdown,” Dunelm said.
“We expect that profit before tax for the 52-week period will be slightly ahead of analyst consensus of £207m. This performance reflects both the particularly strong profitability in H1, when store sales bounced back following re-opening, and robust trading in the second half.”
Dunelm continued to invest in Q4 with the opening of two new and two refitted stores, a new digital functionality to ‘make it easier and more convenient’ for customers to shop, and strengthening its product capabilities, especially in curtains and blinds.
Nick Wilkinson, Chief Executive Officer, commented: “Dunelm is a much bigger and stronger business than before the pandemic, with sales over 40% higher, due in large part to the huge strides we have made to develop our digital capabilities. Our growth continues to be driven by increasing market share as our customer base further expands.
“The macro outlook remains uncertain and we cannot predict exactly how consumers will respond to the increasing pressures on their finances. We are currently seeing customers adapt to this environment in their own ways, utilising the breadth of our offer and price points across homewares; value and choice has always been at the very core of Dunelm, and we are intensely focused on continuing to strengthen this for our customers.
“The business has successfully navigated previous periods of consumer uncertainty. With the inherent strength of our business model and strong operational grip, we have never been more confident about our ability to make the right long-term decisions for all of our stakeholders and to continue to grow our market-leading position.”
