TIDMDNLM
RNS Number : 8279W
Dunelm Group plc
20 April 2023
20 April 2023
Dunelm Group plc
Third quarter trading update
Strong trading with expectations unchanged
Dunelm Group plc ("Dunelm" or "the Group"), the UK's leading
homewares retailer, updates on trading for the 13-week period ended
1 April 2023.
Q3 Year-to-date
-----------------
FY23 FY22 YoY FY23 FY22 YoY
----------------- -------- -------- ------- ---------- ---------- -------
Total sales GBP423m GBP399m +6% GBP1,258m GBP1,195m +5%
-------- -------- ------- ---------- ---------- -------
Digital % total
sales(1) 36% 35% +1ppts 35% 34% +1ppts
-------- -------- ------- ---------- ---------- -------
(1) Digital includes home delivery, Click & Collect and
tablet-based sales in store
Highlights
-- Customers continue to respond well to our proposition, with
broad based growth across our categories, both in stores and
online
-- Strong Q3 sales of GBP423m, up 6%, or c.10% after adjusting
for the timing of the Winter Sale(2)
-- FY23 PBT expectations remain unchanged, and in line with current analysts' consensus(3)
(2) Due to the 53(rd) week at the end of FY22, six days of the
Winter Sale fell into Q2 this year (the Sale began in Q3 last
year)
(3) The current company compiled consensus average of analysts'
expectations for FY23 PBT is GBP185m, with a range of GBP171m to
GBP198m
A good Winter Sale and strong start from new spring lines
Total sales of GBP423m in Q3 increased by 6% compared to the
same period last year. As reported previously, the timing of the
Winter Sale benefitted the sales growth rate in Q2 by c.4ppts, and
negatively impacted the underlying growth rate in Q3 by the same
amount(2) .
Our Winter Sale resonated particularly well with our savvy
home-loving customers, who took advantage of exceptional quality
and value across our categories and price points. We also saw a
good response to our newly introduced designs this spring as we
refreshed our core product ranges and added to our Conscious Choice
range of sustainably-focussed lines, complemented by relevant
seasonal items such as garden decorations and window dressings.
Our total retail system, comprising both our store estate and
online offer, is serving us well, with strong growth in both
channels. The new stores we have opened this year, which include
both larger and smaller formats, continue to perform ahead of our
expectations. Our investment in digitalising the business is also
delivering strong returns, with digital sales making up 36% of
total sales in the quarter, 1ppt higher than the same period last
year.
Gross margin
We continue to maintain a tight operational grip on gross
margin, which in Q3 was consistent with our expectations; 30bps
lower than last year, including a tailwind of c.50bps from the
timing of the Winter Sale.
Whilst the outlook for input costs and retail pricing remains
dynamic, our tight grip enables us to remain focussed on offering
our customers exceptional value for money. We continue to expect
gross margin for the full year to be c.50%, with a lower gross
margin in the second half due to our two Sale events.
Summary and outlook
We performed well during Q3, with strong trading throughout the
period, including a successful Winter Sale, and good demand for our
new collections for spring and summer. Whilst the consumer outlook
remains unpredictable, we remain focussed on strengthening our
customer offer to provide unbeatable choice and value for every
space, style and budget.
Our expectations for FY23 are unchanged from the Interim results
announcement in February, and therefore we expect PBT for the full
year to be in line with current market expectations(3) .
Nick Wilkinson, Chief Executive Officer, commented:
"We are seeing strong momentum in the business as customers
continue to appreciate the quality and value across the Dunelm
range, despite a challenging trading backdrop. This was apparent
through our successful Winter Sale and the positive launch of our
new ranges for spring and summer as customers look forward to
longer days and outdoor living.
"As we continue to seize the many opportunities we see, we are
investing for the long term and making good progress against our
plans, which include the ongoing development and extension of our
product ranges, building our customer data platform and optimising
our marketing channels. These plans give us good confidence for
ongoing success.
"Our core values continue to guide the business and during the
quarter we passed the GBP1m milestone in funds raised for our
charity partner, Mind. I am particularly proud of our colleagues'
efforts to support our communities at such an important time."
For further information please contact:
Dunelm Group plc investorrelations@dunelm.com
Nick Wilkinson, Chief Executive Officer
Karen Witts, Chief Financial Officer
MHP 07710 032 657
Simon Hockridge / Rachel Farrington / Pete Lambie dunelm@mhpgroup.com
Next scheduled event:
Dunelm will release its fourth quarter trading update on 20 July
2023 .
Quarterly analysis:
52 weeks to 1 July 2023
Q1 Q2 H1 Q3 Q4 H2 FY
---------- ---------- ---------- ---------- --- --- ---
Total sales GBP356.7m GBP478.3m GBP835.0m GBP423.3m
---------- ---------- ---------- ---------- --- --- ---
Total sales growth -8.3% 17.6% 5.0% 6.1%
---------- ---------- ---------- ---------- --- --- ---
Digital % total
sales 33% 35% 34% 36%
---------- ---------- ---------- ---------- --- --- ---
53 weeks to 2 July 2022
Q1 Q2 H1 Q3 Q4 H2 FY
---------- ---------- ---------- ---------- ---------- ---------- ------------
Total sales GBP388.8m GBP406.8m GBP795.6m GBP399.0m GBP386.7m GBP785.7m GBP1,581.4m
---------- ---------- ---------- ---------- ---------- ---------- ------------
27.4
Total sales growth 8.3% 12.9% 10.6% 68.6% 1.7% % 18.4%
---------- ---------- ---------- ---------- ---------- ---------- ------------
Digital % total
sales 33% 33% 33% 35% 37% 36 % 35%
---------- ---------- ---------- ---------- ---------- ---------- ------------
Notes to Editors
Dunelm is the UK's market leader in homewares, with a specialist
offering for customers across multiple categories via its 179
predominantly out-of-town superstores and website, dunelm.com.
The business was founded in 1979 as a market stall, selling
ready-made curtains. The first shop was opened in Leicester in
1984, with the first superstore opening in 1991. With a vision to
become the 1(st) Choice for Home, Dunelm offers quality, value and
style throughout its extensive product range, alongside services
such as Home Delivery, Click & Collect and Made to Measure
window treatments. From its textiles heritage in areas such as
bedding, curtains, cushions, quilts and pillows, Dunelm has
broadened its range into categories including furniture,
kitchenware, dining, lighting, outdoor, craft and decoration. Its
c.60,000 product lines include specialist own brands and labels
such as Dorma and Fogarty, sourced from long-term committed
suppliers.
Dunelm's purpose is 'To help create the joy of truly feeling at
home, now and for generations to come'. It has an ambitious
'Pathway to Zero' strategy designed to drive its approach to
climate change, with a focus on reducing carbon emissions and
developing a circular economy mindset. In 2022 Dunelm launched
'Conscious Choice', a collection of products which help its
customers make more thoughtful decisions through products that last
longer and are made from more sustainable materials.
The business is headquartered in Leicester and employs over
11,000 colleagues. It has been listed on the London Stock Exchange
since October 2006 (DNLM.L) and has a current market capitalisation
of approximately GBP2.3bn.
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END
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