Dunelm posts sales growth against a challenging backdrop for retail


Dunelm posts sales growth against a challenging backdrop for retail

Dunelm Group plc has released its trading results for the 13-week period ended 30 March 2024. In the third quarter, total sales in increased by 3 per cent to £435m, driven by volume, despite the challenging sales environment.  The retailer achieved growth in both store and digital channels, with digital sales participation up 1ppt to 37 per cent.  With Increased gross margin by 60bps year-on-year, it maintained strong operational grip while continuing to offer outstanding value. Its FY gross margin is now expected to expand by c.110bps year-on-year.

Dunelm had continued to strengthen its customer offer as the ‘Home of Homes’ and despite a challenging sales environment, it currently expects FY24 PBT to be broadly in line with market expectations

Nick Wilkinson, Chief Executive Officer, commented: “We have delivered a resilient performance in Q3, with continued volume-based sales growth through a period of more challenging and volatile market conditions. Whilst discretionary spend remains under pressure, our relevant and attractive product offer continues to resonate with customers as they shop across our broad ranges to find quality and value for all areas of the home.

“This performance reflects our deep-rooted understanding of our customers and the effectiveness of a total retail system which continues to drive growth across store and digital channels, bringing further market share gains. At the same time, our operational grip continues to mitigate ongoing cost headwinds and has supported a strong gross margin performance.

“Looking ahead, we are excited about strengthening our customer offer, and the breadth of growth opportunities this presents. Consumer behaviour continues to be difficult to predict, however we remain confident in our ability to navigate current conditions whilst delivering further sustainable growth and market share gains.”

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