Dunelm delivers record results as profit surpasses £200m

Home furnishings retailer Dunelm has reported record results as it continued to gain market share in both homeware and furniture categories.

According to its preliminary results for the 53 weeks to 2 July 2022, total sales rose 16.2% to £1.5bn from £1.3bn in 2021, with revenues also 41% higher than in 2019.

Digital sales represented 35% of revenues, down from 46% last year, while pre-tax profit increased 32.4% to £209m from £157.8m year-on-year.

Dunelm said that its homewares market share gained +140bps and continued share gains in furniture, while its new ecommerce and furniture fulfilment operations opened in the year, gave capacity for growth and improved delivery options for customers.

Active customers grew by 8.5% over the year, with increases across all demographics, the retailer added.

Dunelm has also recently re-modelled some of its larger stores to extend the furniture department, showcasing more of its home delivery range for its customers to see and sample and to allow them to ask for advice.

With a look at current trading and its future forecast, Dunelm said sales have remained ‘robust’ in the first 10 weeks of the financial year and expects to deliver c.50% gross margin for the full year.

Nick Wilkinson, Chief Executive Officer, commented: “Our colleagues and our committed supplier partners are at the heart of our success. In another year of excellent performance, I am extremely grateful for their skill, commitment and adaptability in the face of new external challenges and during another busy period of progress across the business.

“We feel confident and well prepared to weather the current economic pressures – we emerged from an unprecedented global pandemic as a bigger, better business and we believe we have the tools in place to do that again. That said, the operating and economic environment is extremely challenging.

“In this environment, we have to make every pound count, both for ourselves through our tight operational grip and cost discipline, and for our customers, through our offer of outstanding value at all price points.

“Dunelm, at its heart, offers customers great choice and value. Now is not the time for us to shy away from that, but for us to fully embrace it; whether it’s our Winter Warm collection or our Student Essentials range, we think Dunelm’s unique and market-leading offer is more relevant than ever before.”

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