Dunelm sees FY profit 'slightly ahead' of market views after 'strong' Q4

18th Jul 2024 07:14

(Sharecast News) - Homewares retailer Dunelm said on Thursday that full-year pre-tax profit was set to be "slightly ahead" of current market expectations of £200m after a "strong" final quarter.

The company said total sales were up 5% in the fourth quarter to £399m, still driven by increased volumes, with growth in both store and digital channels. Dunelm also hailed a "good" summer sale period in June.

Aside from outdoor furniture, which saw softer sales due to the extended period of cooler weather, sales growth was fairly consistent across the categories in the final quarter, it said.

For the year, total sales were up 4% to £1.7bn. "Against a challenging consumer environment, we have driven top line growth through volume, leveraging the strength of our proposition by focussing on value, choice and relevance across our growing product range, which resonates with customers," the retailer said.

Chief executive Nick Wilkinson said: "We delivered another strong performance in Q4, with continued volume-driven sales growth across both store and digital channels. Amidst ongoing consumer caution, our unrelenting focus on value and choice means the Dunelm proposition has continued to resonate with customers, and we saw both full-priced and discounted lines trade well during our summer sale period.

"Throughout the year, we grew sales and continued to exercise tight cost control in an environment of high inflation. Our strong gross margin performance means we now expect our FY24 profit before tax to be slightly ahead of expectations."