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Trading statements

Dunelm outperforms in declining homewares market

12 April 2017 07:20

Homewares retailer Dunelm's total revenues for the third quarter rose by 11.4% to £255.1m and its expectations for the full year remain unchanged.

The group said the homewares market remained in decline but it believed it continued to outperform the market and that the margin of overperformance had increased.

It said: "The market decline began in the fourth quarter last year and we are now approaching its anniversary." Total revenue for the third quarter rose by 11.4% to £255.1m.

Total revenue, excluding Worldstores, rose by 1.0% to £231.3m.

Total like-for-like (LFL) growth (combining LFL stores and Home Delivery) declined by 2.2%.

An update said: "With Easter being later this year, we expect approximately 1.5% of LFL sales to move from the third to the fourth quarter.

"This broadly nets off with the 1.7% of LFL sales that moved from Q2 to Q3 as a result of the timing of our Winter Sale compared to last year."

The group said the integration of Worldstores was going well.

"Performance continues to stabilise following the acquisition and is in line with our expectations.

"We continue to expect that the business will be at least break-even in Dunelm's financial year ending 30 June 2018." Chief executive John Browett said: "We are trading in a volatile retail environment at present, but have continued to outperform the homewares market and so enhanced our position as market leader.

"As a result, our expectations for the full year remain unchanged.

"We remain excited by the acquisition of Worldstores. The business has stabilised and our integration plans are developing well.

"Our home delivery channel goes from strength to strength and will be enhanced by the significant benefits that the acquisition provides to our product range, including the Kiddicare brand, delivery, and speed of IT development.

"We continue to focus on and invest in our long-term growth initiatives, to ensure that Dunelm's low cost model remains a key strategic advantage allowing us to generate cash whilst maintaining our unique offer of value for money, an unrivalled range and great service."

Story provided by StockMarketWire.com

Related Company: DNLM

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