Dunelm expects profits to exceed expectations
Dunelm has said it expects its profits for the 2023 financial year to be “slightly ahead” of its current market expectations.
This comes as the homeware retailer reports its results for the year to 1 July 2023, during which it recorded total sales of £1.64bn, a year-on-year increase of 6%.
Compared to 2019, the last full financial year unaffected by the COVID pandemic, Dunelm’s total sales were up by 50%. Digital sales are also making up a larger chunk of Dunelm’s business compared to 2019, up to 36% from 20%.
Dunelm said it expects its profit before tax for the full year to be ahead of current analysts’ estimations of £188m. The retailer said the performance reflects its “continued robust sales performance, strong commercial disciplines and tight operational grip on costs”.
Dunelm added that it sees “very significant headroom” to deliver further growth. The retailer said it will continue to invest in digitalising and developing its business to improve both its customer offer and to increase operational efficiency.
Nick Wilkinson, Dunelm chief executive officer, said: “We have a strong business model, with committed colleagues and suppliers, who strive every day to improve our customer proposition. We continue to focus on further strengthening our product mastery, developing our stores, enhancing our digital channels, and building out our marketing ecosystem, in order to create an even better experience for our customers. With these improvements to our customer proposition and business capabilities we see a compelling opportunity for sustainable and profitable growth and are confident about the future.”
The retailer will open its latest new store in South East London shortly, bringing its total store estate to 180 sites.