Dunelm has increased its profit guidance as sales soared thanks to shoppers opting for more affordable homeware items amid the ongoing cost-of-living crisis and rising inflation levels.
In the 52 weeks ended 1 July 2023, the homeware retailer saw sales rise by 6% year-on-year to £1.64 billion, up 50% on pre-pandemic levels.
Its online sales, which made up 39% of total sales in the quarter, resulted in the company continuing to see “good sales momentum” in the fourth quarter with “robust sales” growth of 6% and total sales of £381 million.
The company, which has been ranked as a Leading Retailer in the RetailX 2023 Top500 report, also saw “particularly strong volume growth” during the final quarter following price-cutting measures across 1,000 items and summer offers.
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“The breadth and relevance of our product offer has continued to resonate with our home-loving customers over the last quarter of the year,” CEO Nick Wilkinson said.
“This has been reflected in our strong financial performance despite the challenging broader consumer backdrop.
“Against this backdrop, our commitment to value is stronger than ever. During the quarter we lowered prices on over 1,000 lines, and our customers were also able to take advantage of great offers in our Summer Sale.”
He added: “We continue to focus on further strengthening our product mastery, developing our stores, enhancing our digital channels, and building out our marketing ecosystem, 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.”
Looking forward, the company revealed it is investing more in digitalising and developing its business to improve both its customer offering and to make “operations more efficient”.
It concluded: “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.”
Dunelm features as a case study in the RetailX 2023 Top500 report, click here to view more:
