Strong results for Dunelm in ‘uncertain’ trading times

Leicester homewares retailer Dunelm has posted what it is calling “strong” prelinary results for the year to June 29.

Revenues increased by 4.1% to just over £1.7bn, while profit before tax was up 6.6% to £205.4m.

Despite the encouraging performance, Dunelm said that it is operating in a “challenging consumer environment” with the timing of recovery “uncertain”.

Nick Wilkinson, chief executive officer, said: “This strong set of results is testament to the hard work of our adaptable and committed colleagues. In a period when consumers faced inflationary pressures and competing demands for their disposable income, we have continued to raise the bar on the relevance and value we offer at Dunelm. The continued delivery of volume-driven sales growth and further share gains in this softer market underlines this, and the strength and resilience of our business model.

“We have made good progress with our growth plans, including the expansion of our store estate, building a faster and better digital experience for customers, and advancing our tech and data capabilities. As we evolve our strategic thinking in this changing environment, we are now even clearer on the areas which will help us to unlock our full potential as The Home of Homes.

“Whilst we are gradually seeing improvements to economic indicators, we are yet to see a meaningful change in consumer spending habits in our markets. Against this backdrop, and compared to a strong first quarter last year, we have made a solid start to FY25. Our plans give us a clear pathway to reaching our next milestone of 10% market share in the medium term, and we remain very confident in our ability to deliver long-term sustainable growth as a result.”