Dunelm’s full year profit jumps by 45%
Homewares retailer Dunelm has posted a 45% increase in full year pre-tax profit to £157.8 million following investment in its digital capabilities during the coronavirus pandemic.
In the 52 weeks to 26 June, sales surged by 26% to £1.33 billion despite the retailer’s stores being closed to customers for more than a third of its financial year.
Dunelm said the appeal of its proposition helped it to increase its active customer base by 8.5% year-on-year with growth of 106% in digital and multichannel customers, although this was partially offset by a decline in its store customer base due to shop closures during lockdowns.
Online sales climbed by 115% in the period which Dunelm attributed to the flexibility of its digital platform and supply chain in meeting high levels of customer demand. This was helped by investments made in the digital proposition which enabled it to improve its online experience. The retailer said its physical stores were equally popular when open.
Nick Wilkinson, Dunelm chief executive, said: “We delivered an excellent performance in FY21, despite our stores being closed for more than a third of the year, demonstrating the strength and resilience of our business model and the adaptability and commitment of our
colleagues and suppliers.
“The digital investments we had made enabled us to rapidly adapt to the changing environment and deliver strong growth and an improved customer experience. We are emerging from the pandemic as a stronger and better business, having transitioned from being a physical retailer with digital aspirations to being a proven, digital first multichannel retailer.”
Giving an update on current trading, Dunelm described sales growth in the first ten weeks of the new financial year as encouraging and said the strong start had been better than expected. This means its board now expects full year pre-tax profit for the current financial year to come in modestly ahead of the top end of analysts’ expectations.
Wilkinson added: “We aim to be our customers’ first choice for home, helping everyone to create the joy of truly feeling at home, now and for the generations to come. Our business plans will deliver for all our stakeholders, and include our commitment to a Net Zero Pathway, with an absolute reduction in emissions of 50% by 2030.
“Whilst the macro-outlook remains uncertain and we are seeing some industry-wide issues such as ongoing supply chain disruption and inflationary pressures from raw materials, freight costs and driver shortages, we feel well placed to continue managing these challenges.”
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