Value homewares retailer Dunelm expects full year profit to be in line with expectations after revealing like-for-like growth improved in the fourth quarter.
Like-for-likes rose 1.9% in the 13 weeks to July 2, compared with a 52 week fall of 0.6%. Total sales surged 11%to £123.8m in the quarter.
The retailer said it had gained share as it benefited from the “strength and breadth of Dunelm’s customer offer, particularly in its range of price points”.
Dunelm expects full year gross margin to have increased by approximately 120 basis points after mitigating the impact of commodity inflation.
The 103-store retailer sees scope for 200 shops and said the pipeline for new stores remains strong.
Chief executive Nick Wharton said: “In what has been a challenging year, we are encouraged by the trading performance and the strategic development of the business.”
FinnCap analyst Dave Stoddart said: “The strong balance sheet is a source of comfort in difficult times. The Dunelm chain is profitable and has the scope to double in size and realising economies of scale.”
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