Home furnishings retailer Dunelm has reported a growth in sales and profit in what has been another strong year for the business.
According to its preliminary results for the 52 weeks to 29 June 2024, total sales rose 4.1% to £1.7bn from £1.6bn in 2023.
Gross margin improved from 50.1% to 51.8%, while pre-tax profit resulted at £205m, up 6.6% from £193m against the previous year.
“Overall growth was broad-based across categories, demonstrating our customer appeal and the resilience of our proposition,” Dunelm said. “We continue to benefit from elevating our product offer, with our ‘Cook & Dine’ and upholstered furniture categories maintaining their strong performance from the first half of the year.
“We also saw significant growth in our made-to-measure window treatments, where we have continued to expand our capability, bringing more of the manufacturing in-house and introducing new ranges such as Venetian blinds.”
Both store and digital channels grew year-on-year, and digital participation increased again, up 1ppt to 37%.
Dunelm said it saw an increase in active customers of 5.1%, with growth across all age, income and geographic cohorts, while six new stores were opened (including one relocation) in line with its plans.
In addition, and to better serve its target customers in inner London boroughs, Dunelm is testing some smaller stores in London. “Our first inner London store, at c.5,000sqft, will open in the first half of FY25, and we are exploring other locations to unlock the opportunity with this significant segment of the UK population where we know we are under-represented,” the retailer said.
Looking ahead, Dunelm expects sales growth in FY25 to be driven by volume and further market share gains and remains ‘confident’ to reach its next milestone of 10% market share in the medium term.
Nick Wilkinson, Chief Executive Officer, commented: “This strong set of results is testament to the hard work of our adaptable and committed colleagues. In a period when consumers faced inflationary pressures and competing demands for their disposable income, we have continued to raise the bar on the relevance and value we offer at Dunelm. The continued delivery of volume-driven sales growth and further share gains in this softer market underlines this, and the strength and resilience of our business model.
“We have made good progress with our growth plans, including the expansion of our store estate, building a faster and better digital experience for customers, and advancing our tech and data capabilities. As we evolve our strategic thinking in this changing environment, we are now even clearer on the areas which will help us to unlock our full potential as The Home of Homes.
“Whilst we are gradually seeing improvements to economic indicators, we are yet to see a meaningful change in consumer spending habits in our markets. Against this backdrop, and compared to a strong first quarter last year, we have made a solid start to FY25. Our plans give us a clear pathway to reaching our next milestone of 10% market share in the medium term, and we remain very confident in our ability to deliver long-term sustainable growth as a result.”
