Homewares group Dunelm has posted a rise in full-year profits after a strategic overhaul and is in “better shape than ever” to grow.
- Pre-tax profit up 4.7% to £121.4m
- Store like-for-likes ahead 3.4%
- Target to increase sales by 50%
- Peter Ruis joins as a non-executive director
Dunelm’s pre-tax earnings climbed 4.7% last year to £121.4m on sales ahead 12.7% to £822.7m,
Like-for-likes advanced 3.4% in stores over a 52-week period to June 27, when home delivery sales soared 55% to account for 6.1% of total revenues.
Dunelm chief executive Will Adderley, who hands over the reins in January 2016 to former Dixons Carphone and Apple director John Browett, said the performance reflected a strategic overhaul and new ambitions for growth.
Dunelm has identified store like-for-like sales growth, store openings and building sales and profits from home delivery as the strategic pillars upon which it aims to increase sales by 50% over the medium term.
‘A busy and successful year’
Refits, strong seasonal ranges and greater emphasis on service have helped Dunelm deliver like-for-like growth in stores and the retailer will develop the initiatives further.
New stores are delivering “strong returns” and London and the Southeast are areas of focus for more branches.
Dunelm relaunched its website last month, which is expected to pave the way for more delivery options and greater convenience.
Adderley said: ““It has been a busy and very successful year at Dunelm and the business is in better shape than ever with good momentum and clear plans for further growth.”
Chairman Andy Harrison said: “We are at a very exciting time in our development.
“We enter a new chapter of growth with a refreshed executive team, led by John, and supported by Will, who are two of the top retailers of their generation. We also have a great team across the business.
“Dunelm has an outstanding track record and is in great health. We look forward to reporting on our further progress.”
Dunelm also revealed it has appointed Peter Ruis, chief executive of fashion retailer Jigsaw and a former John Lewis staffer, as a non-executive director.
Harrison said: “His skills in growing and transforming retail businesses will be a great asset to the senior team as Dunelm enters its next phase of growth.”