TIDMDNLM
RNS Number : 5776G
Dunelm Group plc
20 July 2023
20 July 2023
Dunelm Group plc
Q4 and full year trading update
Continued robust sales, profit expected to be slightly ahead of
current market expectations
Dunelm Group plc ("Dunelm" or "the Group"), the UK's leading
homewares retailer, updates on trading for the 13-week period ended
1 July 2023 and for the full year.
Full year YoY(2) Q4 FY23 YoY(2)
FY23
-----------------
Total sales GBP1,639m +6% GBP381m +6%
---------- ------- -------- -------
Digital % total
sales(1) 36% +1ppts 39% +2ppts
---------- ------- -------- -------
(1) Digital includes home delivery, Click & Collect and
tablet-based sales in store
(2) For statutory purposes, FY22 included a 53(rd) week. YoY
growths are presented on a comparable 13/52 week basis
Highlights
-- Continuing robust growth in Q4, with sales of GBP381m
-- Strong full year sales growth of 6%, in a challenging consumer environment
-- FY23 profit before tax expected to be slightly ahead of current market expectations(3)
(3) The current company compiled average of analysts'
expectations for FY23 PBT is GBP188m
Continued sales momentum and a strong Summer Sale
Q4 FY23
We continued to see good sales momentum in the fourth quarter,
with robust sales growth of 6% and total sales of GBP381m. Digital
sales made up 39% of total sales in the quarter, 2ppts higher than
FY22.
We remain, as ever, focussed on offering our customers a great
choice of products and outstanding value across all our ranges and
price points. During the quarter our customers were able to take
advantage of great offers during our Summer Sale, and we reduced
prices on over 1,000 lines. We are pleased that in the quarter we
saw particularly strong volume growth.
Our product offer continued to resonate strongly with customers
throughout the quarter, with cooler weather driving sales of our
bedding and rugs ranges, while our Summer Living collections, in
particular garden furniture and decorations, performed well in the
warmer weather towards the end of the period.
FY23
Total sales of GBP1,639m for the full year were 6% higher than
FY22, on a comparable 52-week basis. Compared to FY19 (the last
full year before any impact from Covid) total sales are nearly 50%
higher and digital sales now make up 36% of total sales (FY19:
20%). Dunelm is now a bigger and better business with a
significantly improved customer proposition and more customers
engaging with our brand.
Profit expected to be slightly ahead of market expectations
Gross margin for the full year is expected to be in line with
our guidance of c.50%.
We expect profit before tax for the full year to be slightly
ahead of current analysts' consensus of GBP188m. This performance
reflects our continued robust sales performance, strong commercial
disciplines and tight operational grip on costs.
Summary and outlook
We achieved another strong performance in FY23 against a
backdrop of increasing input cost prices for much of the year and
high general inflation. We continued to offer outstanding value
across our broad range of product categories, from everyday
necessities to rewarding essentials as well as more considered
purchases. Our tight operational grip delivered gross margin in
line with our expectations with profit before tax expected to be
slightly ahead of analysts' consensus.
We see very significant headroom to deliver further profitable
growth, seizing the opportunity to raise the bar further on our
customer offer, especially in terms of value. We will therefore
continue to invest in digitalising and developing our business to
improve both our customer offer and to make our operations more
efficient. Our next new store in South East London, our 180(th) ,
will open shortly, increasing the reach of our total retail system
and bringing our offer to more communities.
We are pleased with trading so far in the new financial year.
Whilst the consumer outlook remains uncertain, we will keep
focussing on delivering outstanding value and relevance to our
customers. We will continue to invest thoughtfully for the future
and are excited by the opportunities ahead to achieve further
market share gains.
Nick Wilkinson, Chief Executive Officer, commented:
"The breadth and relevance of our product offer has continued to
resonate with our home-loving customers over the last quarter of
the year. This has been reflected in our strong financial
performance despite the challenging broader consumer backdrop.
"Against this backdrop, our commitment to value is stronger than
ever. During the quarter we lowered prices on over 1,000 lines, and
our customers were also able to take advantage of great offers in
our Summer Sale.
"We have a strong business model, with committed colleagues and
suppliers, who strive every day to improve our customer
proposition. We continue to focus on further strengthening our
product mastery, developing our stores, enhancing our digital
channels, and building out our marketing ecosystem, in order to
create an even better experience for our customers. With these
improvements to our customer proposition and business capabilities
we see a compelling opportunity for sustainable and profitable
growth and are confident about the future."
For further information please contact:
Dunelm Group plc investorrelations@dunelm.com
Nick Wilkinson, Chief Executive Officer
Karen Witts, Chief Financial Officer
MHP 07595 461 231
Oliver Hughes / Rachel Farrington / Charles Hirst dunelm@mhpgroup.com
Next scheduled event:
Dunelm will make its preliminary results announcement on 20
September 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 GBP380.5m GBP803.8m GBP1,638.8m
---------- ---------- ---------- ---------- ---------- ---------- ------------
Total sales
growth -8.3% 17.6% 5.0% 6.1% 6.1% 6.1% 5.5%
---------- ---------- ---------- ---------- ---------- ---------- ------------
Digital % total
sales 33% 35% 34% 36% 39% 37% 36%
---------- ---------- ---------- ---------- ---------- ---------- ------------
52 weeks to 25 June 2022
Q1 Q2 H1 Q3 Q4(4) H2(4) FY(4)
---------- ---------- ---------- ---------- ---------- ---------- ------------
Total sales GBP388.8m GBP406.8m GBP795.6m GBP399.0m GBP358.5m GBP757.5m GBP1,553.1m
---------- ---------- ---------- ---------- ---------- ---------- ------------
Total sales 22.8
growth 8.3% 12.9% 10.6% 68.6% -5.7% % 16.2%
---------- ---------- ---------- ---------- ---------- ---------- ------------
Digital % total
sales 33% 33% 33% 35% 37% 36 % 35%
---------- ---------- ---------- ---------- ---------- ---------- ------------
(4) FY22 results shown on a comparable 52-week basis. On a
53-week basis, Q4 sales were GBP386.7m and full year sales were
GBP1,581.4m.
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.65,000 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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