Dunelm hails strong fourth quarter performance
Homeware retailer Dunelm has seen its fourth quarter total sales more than double to £380.1 million compared to the same period last year when stores were closed during the first Covid-19 lockdown.
On a two year basis, total sales in the 13 week period to 26 June grew by 43.9%.
The retailer’s online business performed particularly well, with sales rising by 38%. In addition, Dunelm said in-store sales were exceptionally strong following the easing of lockdown restrictions on 12 April and remained robust during the rest of the quarter despite the retailer delaying its summer sale.
The sales growth came from a wide range of categories including bedding, curtains, bathroom textiles and cushions, as well as dining furniture and decorative accessories.
As a result of the performance and a higher gross margin rate than anticipated, Dunelm now expects its full year pre-tax profit to come in at around £158 million, which is slightly ahead of analyst forecasts.
Nick Wilkinson, Dunelm chief executive, said: “Although our stores were closed for more than a third of the year, our strategy of investing in our digital capabilities allowed us to adapt to the changing environment and deliver strong growth.
“From what we have learned during the pandemic about our customers, colleagues, suppliers and our other stakeholders, we are more confident than ever about the opportunity to increase our market leadership and we will invest further in our proposition to support our growth ambitions.
“With many exciting developments in the pipeline to make us the first choice for home, and grow our customer base and frequency, there is a lot to look forward to.”