Dunelm warns that full year profit will be at lower end of market expectations
Dunelm has warned that its annual pre-tax profit will be at the lower end of expectations as events in the Middle East impact consumer confidence.
In its third quarter trading update for the 13 weeks to 28 March, the homeware retailer said sales grew by 2.1% to £472 million and by 3.1% to £1.4 billion in the year-to-date.
Subscribe to TRBGross margin increased by 30bps year-on-year in the third quarter despite an uncertain consumer environment. Dunelm said its cost plans remain on track.
Clo Moriarty, Dunelm chief executive, said: “We saw further sales growth in Q3, against an uncertain backdrop for both customers and businesses.
“Although the external environment is not helpful in the short term, we continue to focus on the areas within our control – strengthening our proposition while operating efficiently and effectively.
“Alongside this, we are making good progress building our long-term growth plans with some exciting developments beginning to emerge, including a much stronger store opening pipeline and some encouraging early results from our recently launched app.”
The company now expects its full year pre-tax profit to come in towards the lower end of consensus expectations of £210 million to £217 million.
Moriarty said: “Our final quarter provides multiple opportunities for Dunelm to stay front of mind for customers, including our popular summer sale.
“We remain confident that our comprehensive offer will continue to resonate with home lovers.”
