Dunelm expects full-year profit at top of range

Dunelm expects full-year profit at top of range

Dunelm expects its full-year profit before tax to lie at the upper end of its range, the company said in a fourth quarter trading update on Wednesday.

Dunelm raised its annual profit forecast last month, expecting its profit before tax for the year to be above the £102 million from the year before.

Back in April, the retailer said that it was expecting full-year profits to be “slightly ahead” of forecasts.

The homewares retailer said on Wednesday that it now expects its full-year profit before tax to be towards the upper end of the company’s £124 million – £126 million range.

Total like-for-like revenue for the fourth quarter was up 15.4%, reflecting Dunelm’s strong underlying growth both in stores and online.

Like-for-like store revenue was up 12.1% over the period and like-for-like online revenue continued to see strong growth in the quarter, up 37%.

Dunelm also added that its results were driven by a weaker comparator period last year and favourable weather this year. It seems that the rainy start to summer in the UK has spurred consumers to re-furnish their homes.

“The strong growth in the final quarter, and the year as a whole, demonstrates that in a rapidly changing marketplace, the broad appeal of Dunelm’s purpose ‘to help everyone create a home they love is resonating well,” Nick Wilkinson, Chief Executive Officer of Dunelm, said in a company statement.

“We continue to invest in the business, particularly in strengthening our digital capabilities and reaching more customers through our brand marketing initiatives,” the Chief Executive continued.

“Looking forward, as the UK’s leading homewares specialist, we see significant opportunity for continued growth both from our stores and online, whilst maintaining our improved operational discipline. In the short-term, we remain cautious about the uncertain political climate and the impact it may have on consumer spending, but expect to make further progress in the year ahead and are confident about the Group’s longer-term prospects.”

Shares in Dunelm Group plc (LON:DNLM) were last trading at -0.35% as of 11:49 BST.