Dunelm on track to beat profit expectations as summer sales shine

The group said solid performance in the last few months means it is on track to post profits ‘slightly’ above the £188 million expected in the market.

Homewares retailer Dunelm has nudged up its earnings outlook (PA) (PA Wire)

Homewares retailer Dunelm has nudged up its earnings outlook as its garden ranges proved in demand amid the warmer summer weather.

The group said sales rose 6% over its final quarter to July 1, helping full year revenues lift 6% to £1.6 billion.

Dunelm said the solid performance in the last few months means it is on track to post profits “slightly” above the £188 million expected in the market.

But this will still mark a fall on the £212.8 million posted for the previous year.

The group said its performance comes against a “backdrop of increasing input cost prices for much of the year and high general inflation”.

On the fourth quarter trading, it added: “Our product offer continued to resonate strongly with customers throughout the quarter, with cooler weather driving sales of our bedding and rugs ranges, while our summer living collections, in particular garden furniture and decorations, performed well in the warmer weather towards the end of the period.”

The group said online sales accounted for 39% of all revenues in the fourth quarter, against 37% overall in 2021-22.

Nick Wilkinson, chief executive of Dunelm, said: “The breadth and relevance of our product offer has continued to resonate with our home-loving customers over the last quarter of the year.

“This has been reflected in our strong financial performance despite the challenging broader consumer backdrop.”