TIDMDNLM
RNS Number : 5935Q
Dunelm Group plc
19 October 2023
19 October 2023
Dunelm Group plc
First quarter trading update
Strong sales growth with margin improvement consistent with
guidance
Dunelm Group plc ("Dunelm" or "the Group"), the UK's leading
homewares retailer, updates on trading for the 13-week period ended
30 September 2023.
Q1 YoY
-----------------
Total sales GBP390m +9%
--------- -------
Digital % total 35% +2ppts
sales(1)
--------- -------
(1) Digital includes home delivery, Click & Collect and
tablet-based sales in store
Highlights
-- Strong sales performance, with total sales increasing by 9% to GBP390m
-- On track with our accelerated store roll-out plan of five to
ten stores per year for the next two years, with one new store
opened in Q1 and a further three expected to open before the end of
Q2
-- Continuing to offer customers outstanding value while increasing gross margin by 120bps
Delivery against our plans driving strong sales growth
We are pleased to report another strong period of growth in the
first quarter, with total sales increasing by 9% to GBP390m,
largely driven by volume. Both our stores and digital channels
performed well, with the contribution from digital sales up 2ppts
year-on-year to 35%.
As a long-standing specialist with deep product mastery, in a
complex consumer environment we were able to carefully manage gross
margin whilst continuing to focus on offering outstanding value to
our customers.
Growth was broad based across our categories with our new
autumn/winter ranges, including new collaborations with Disney and
the Natural History Museum, resonating well by offering colour and
personality to help customers find joy as they enhance their homes.
Our upholstery ranges also performed strongly, with good growth in
sofas and sofa beds, where we have added new shapes and colours to
our best selling ranges.
Gross margin
We benefited from a net tailwind from freight and foreign
exchange rates whilst continuing to offer outstanding value to our
customers. We delivered growth in sales volume while improving
gross margin by 120bps, consistent with our full year guidance for
gross margin to increase by c.100bps year-on-year.
Summary and outlook
We continue to focus on making every pound count, for both our
customers and our business, and we are making good progress against
the plans we set out in our results announcement in September.
We are seizing the opportunity to amplify our brand and extend
our reach, with our new 'Home of Homes' brand marketing campaign,
which launched at the end of September. This is our biggest and
widest reaching campaign to date, taking the brand to new audiences
and showcasing the breadth of our homewares offering.
We continued to strengthen our customer offer, with convenient
five-day lead times on most of our upholstery ranges, improving
availability in categories such as cabinet furniture and
introducing conscious choice options into our Christmas baubles
ranges. We also introduced exciting new lines, such as live plants
and personalised products.
We are seizing the opportunity to extend and digitalise our
total retail system. With one new store opened during the quarter
and a further three stores expected to open before the end of Q2,
we are on track to achieve our full year target of five to ten new
store openings (including relocations).
Whilst the UK economy and consumer outlook remain relatively
uncertain, we are well placed to deliver ongoing sustainable growth
as consumers continue to enjoy the outstanding value proposition
for which we are known.
Nick Wilkinson, Chief Executive Officer, commented:
"Our proposition, which offers an increasingly wide range of
homewares products, continues to prove popular with customers, as
we delivered another strong sales performance in Q1. We continue to
have a laser focus on outstanding value, and customers can now find
even more choice with the introduction of new ranges such as live
plants.
"We are reaching more and more UK consumers through our
expanding store estate, and our latest marketing campaign, which is
our biggest to date, showcases the breadth of the Dunelm offer,
reinforcing our position as 'The Home of Homes'.
"There remains a significant opportunity for Dunelm to take
further market share and we are excited about the progress we are
making against our plans, through targeted and thoughtful
investment, in order to seize the compelling opportunities ahead of
us. We remain very confident about our prospects for continuing to
drive sustainable growth."
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 dunelm@mhpgroup.com
Hirst
Next scheduled event:
Dunelm will release its second quarter trading update on 18
January 2024 .
Quarterly analysis:
52 weeks to 29 June 2024
Q1 Q2 H1 Q3 Q4 H2 FY
---------- --- --- --- --- --- ---
Total sales GBP389.6m
---------- --- --- --- --- --- ---
Total sales
growth +9.2%
---------- --- --- --- --- --- ---
Digital % total
sales 35%
---------- --- --- --- --- --- ---
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%
---------- ---------- ---------- ---------- ---------- ---------- ------------
Notes to Editors
Dunelm is the UK's market leader in homewares with a purpose 'to
help create the joy of truly feeling at home, now and for
generations to come'. Its specialist customer proposition offers
value, quality, choice and style across an extensive range of
c.75,000 products, spanning multiple homewares and furniture
categories and including services such as Made to Measure window
treatments.
The business was founded in 1979 by the Adderley family,
beginning as a curtains stall on Leicester market before expanding
its store footprint. The business has grown to 180 stores across
the UK and has developed a successful online offer through
dunelm.com which includes home delivery and Click & Collect
options. 152 stores now include Pausa coffee shops, where customers
can enjoy a range of hot and cold food and drinks.
From its textiles heritage in areas such as bedding, curtains,
cushions, quilts and pillows, Dunelm has built a comprehensive
offer as 'The Home of Homes' including furniture, kitchenware,
dining, lighting, outdoor, decoration and DIY. The business
predominantly sells specialist own-brand products sourced from
long-term, committed suppliers.
Dunelm 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 the business has returned over GBP1bn in
distributions to shareholders in the last ten years(2) .
(2) Ordinary dividends plus special dividends plus special
distributions.
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