Dunelm full year profit hit by lockdown
Homewares retailer Dunelm has seen it full year pre-tax profit decline by 13.3% to £109.1 million after trading was impacted by store closures during the Covid-19 lockdown.
In the year to 27 June, total sales dropped by 3.9% to £1.06 billion but in the eight months to February they rose by 6.8%.
Nick Wilkinson, Dunelm chief executive, said: “We made good progress before the onset of Covid-19, building our digital capabilities, extending our product choice and value, and broadening and deepening our customer base.
“These unprecedented times have confirmed the strength of the Dunelm business model, with our integrated online and out-of-town stores proposition, broad product range, long-term supplier relationships, strong cash generation and operational grip.”
Dunelm said its new financial year has started well with total sales climbing ahead of expectations. On a year-on-year basis, sales rose by 59% in July and by 24% in August, which the retailer attributed to pent-up demand post lockdown and the timing of its summer sale.
Looking ahead, Wilkinson said: “Whilst the year to date performance has been materially ahead of our initial expectations, it is very difficult to provide any meaningful guidance on the future outlook given the uncertainty in the wider economy and the potential impact of further regional or national lockdowns. However, we remain confident in our ability to adapt to the environment and are well positioned to continue to grow market share and help even more customers create a home they love.”
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