Dunelm profits from wet weather
Homewares retailer Dunelm saw like-for-like sales growth of 10.4% in its fourth quarter as the rainy weather in the period drove strong footfall in its stores. This compares to growth of 1.9% in the same period last year.
Total revenues increased by 21.2% in the 13 weeks to 30 June while gross margin is expected to increase by approximately 20-30 basis points for the full financial year.
Dunelm said it now expects that pre-tax profit for the year to be around £96 million which is ahead of current consensus expectations. The company has attributed £2.5 million of this outperformance to the "exceptional weather benefit" in the second half of the financial year.
The company opened a new superstore in Greenford in the quarter, bringing the total number of openings in the financial year to 14 including two relocations. It now operates 115 superstores and has ten new stores in the pipeline.
Chief Executive Nick Wharton commented: "The final quarter has seen further strong progress throughout the business, with robust like-for-like sales trends.
"Looking ahead, we anticipate that consumer spending will remain under pressure. Nevertheless, with ten further store openings committed, a strengthening multi-channel offering and with our unique proposition resonating with a wide range of customers, we remain confident in the future growth prospects for the business."
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