Dunelm Group plc, the UK's leading homewares retailer, has reported a strong finish to its financial year, with final quarter sales rising by 5% to £399 million and full-year revenues reaching £1.706 billion—up 4% year-on-year.
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The group's FY24 performance was underpinned by volume-driven growth across both physical stores and digital platforms, the latter now accounting for 40% of total sales. Dunelm also expects profit before tax (PBT) to come in "slightly ahead of current market expectations", with the analyst consensus set at £200 million.
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.'
Gross margin is forecast to improve by approximately 170 basis points, supported by lower freight rates and stronger performance in both discounted and full-price sales. Dunelm also expanded its store network in FY24, opening six new sites, including a relocation in Edinburgh, and remains "increasingly confident" in its smaller-format concept.
The retailer also made notable digital strides in the final quarter, including the launch of 'back in stock' notifications and expanding Click & Collect availability. Operational capacity was further bolstered by a new depot in Barnsley, enhancing the brand's home delivery capabilities.
Wilkinson added:
'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.' Looking ahead to FY25, Dunelm remains cautiously optimistic.
'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,' said Wilkinson. 'Notwithstanding the continuing uncertainty in our markets, we're both excited and confident in our plans.'
Dunelm will publish its full-year preliminary results on 11 September 2024.
More infromation:
Dunelm Group plc
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