Dunelm sales accelerate as demand for furniture grows
Sales at Dunelm have accelerated in recent months amid strong demand for affordable homeware among UK customers.
Shares in the company moved firmly higher as a result, despite the retailer highlighting “increased levels of uncertainty and volatility” in the economic backdrop.
The Leicester-based chain told shareholders on Thursday that total sales grew by 6.3% to £462 million for the three months to March 29, compared with the same period a year earlier.
It means the group has seen sales growth speed up in recent months, with sales up 3.7% for the first nine months of the current financial year so far.
Dunelm saw sales grow across homeware and furniture, amid a “strong start” for its new spring/summer ranges.
Furniture products “performed particularly well”, and those with bolder designs proved popular with customers, the company said.
It said that pre-tax profits are on track to be within industry guidance, and analysts predicted a profit between £204 million and £214 million for the year.
Despite the improved sales growth, Dunelm said it was “too early” to say whether it is an improved trend which will continue in the longer term.
The group said it was “mindful of increased levels of uncertainty and volatility in the current environment, and the known labour-cost headwinds”.
Nick Wilkinson, chief executive, said: “We’ve had a good third quarter, with strong growth and further strategic progress.
“The Dunelm brand continues to attract a broad range of customers, offering outstanding value and quality, and we’re really pleased with how our new ranges are being received.
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“Our customers are now enjoying getting their homes and gardens ready for summer and we’re focused on being as relevant as possible for the warmer months ahead.
“We remain very mindful of the wider backdrop and the impact of increased uncertainty on consumer sentiment, but maintain our focus on strengthening Dunelm’s position as the home of homes.”
Shares in the business were 6.4% higher in early trading.