Dunelm continues with strong sales growth despite economic headwinds
Homewares retailer Dunelm posted strong sales growth this morning, despite ongoing macroeconomic concerns.
In its full year results, the firm posted sales growth of 16.2 per cent, with total sales 41 per cent higher than 2019 levels.
Sales hit £1.5bn, with profit before tax at £209m. Active customers grew by 8.5 per cent over the year, with increases across all demographics.
Dunelm chief Nick Wilkinson said: “We feel confident and well prepared to weather the current economic pressures – we emerged from an unprecedented global pandemic as a bigger, better business and we believe we have the tools in place to do that again. That said, the operating and economic environment is extremely challenging”.
He said as the cost of living continues to bite, customers have been drawn to the retailer’s “offer of outstanding value at all price points”.
Analysts at Peel Hunt backed the retailer, stating that Dunelm managed inflationary pressures well, “maintaining or even reducing compelling opening price points, increasing choice and options, delivering a value proposition that is more than just price”.
“There is no sign of trading down, or weakness in any category”, they said, adding that it enters the new year with “record brand awareness, active customers and an intent to double down on value.”
As reported by City PM, Whitbread’s outgoing boss Alison Brittain was announced as the new non-executive director role for the homeware brand in July.
Brittain joined the Dunelm board at September, and is expected that she will succeed Andy Harrison as chair in September 2023.
Dunelm shares climbed two per cent this afternoon.