Dunelm revenues reach £1.63bn as price cuts lure customers in
Dunelm reported a revenue rise of six per cent over the past year, with the homeware retailer predicting profits to be “slightly ahead” of current market expectations.
The Leicester born business said revenues reached £1.63bn in the 52 weeks to July up from £1.55bn in the same period last year.
Sales growth declined -8.3 per cent in the first quarter of the year, as the retailer was initially hit hard by high inflation, however figures show that it shot up to 17.2 per cent by the second quarter.
Sales growth now sits at 6.1 per cent as the group slashed its prices on up to 1,000 products to entice customers amid the cost of living crisis and were also bolstered by strong summer sales.
In the fourth quarter, Dunelm said it is continuing to see good sales momentum racking in total sales of £381m, up from £358m compared to the prior year.
The group will also open its 180th site this year in South East London.
“We continued to offer outstanding value across our broad range of product categories, from everyday necessities to rewarding essentials as well as more considered purchases. Our tight operational grip delivered gross margin in line with our expectations with profit before tax expected to be slightly ahead of analysts’ consensus,” Nick Wilkinson, chief of Dunelm said.
“We are pleased with trading so far in the new financial year. Whilst the consumer outlook remains uncertain, we will keep focussing on delivering outstanding value and relevance to our customers. We will continue to invest thoughtfully for the future and are excited by the opportunities ahead to achieve further market share gains.”