Dunelm like-for-like sales down 2.2% in third quarter
Homewares retailer Dunelm saw its like-for-like sales fall by 2.2% in its third quarter as it battled against a “volatile” trading environment.
In the 13-week period ended 1 April, total revenue rose by 11.4% to £255.1 million. Total revenue, excluding Dunelm’s recently acquired Worldstores business, rose by 1% to £231.3 million.
The company said its trading is continuing to be impacted by a declining homewares market. In addition, a later Easter this year means that Dunelm expects around 1.5% of like-for-like sales to move from the third to the fourth quarter. This broadly nets off with the 1.7% of like-for-like sales that moved from the second to the third quarter as a result of the timing of Dunelm’s winter sale compared to last year.
The retailer said it continues to see strong growth in its online business, including a 21% increase in home delivery sales for the quarter. Like-for-like sales in its stores dropped by 4.3%.
John Browett, Dunelem chief executive, said: "We are trading in a volatile retail environment at present, but have continued to outperform the homewares market and so enhanced our position as market leader. As a result, our expectations for the full year remain unchanged.”
Dunelm also revealed that the integration of Worldstores is going well and is in line with expectations. The company expects the business to be at least break-even in the financial year ending 30 June 2018.
Browett added: "We remain excited by the acquisition of Worldstores. The business has stabilised and our integration plans are developing well. Our home delivery channel goes from strength to strength and will be enhanced by the significant benefits that the acquisition provides to our product range, including the Kiddicare brand, delivery, and speed of IT development.
"We continue to focus on and invest in our long-term growth initiatives, to ensure that Dunelm's low cost model remains a key strategic advantage allowing us to generate cash whilst maintaining our unique offer of value for money, an unrivalled range and great service."
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