Dunelm profits ahead of forecast after strong final quarter

Dunelm, the Leicester-based homewares retailer, says it expects profits to come in slightly ahead of expectations for the year to June 29 after posting a strong final quarter.

Sales rose by 5% in the firm’s fourth quarter, with Dunelm ending the year with total sales of just over £1.7bn. Profits are expected to come in at around the £200m mark.

Nick Wilkinson, chief executive officer, 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.

“Going into FY25, we have a significant opportunity ahead of us. We are finding quality sites for new stores, and are increasingly confident in our smaller format stores. We are also continuing to invest in both our digital offer and wider operations to support further market share gains. However, we will need to maintain strong operational grip given ongoing wage inflation. Notwithstanding the continuing uncertainty in our markets, we’re both excited and confident in our plans.”