Dunelm boosts profit forecast in wake of homewares boom

The homewares retailer recorded a 26% uplift in sales to £1.3bn for the full year to June 26, which was also up 21% compared with 2019.

This was boosted by a 102% rise year on year in the fourth quarter to £380m.

On a two-year basis, the quarter’s sales also rose 44% indicating the growing market for homewares.

Dunelm has enjoyed sales growth from a broad range of categories including bedding, curtains, bathroom textiles and cushions, and newer categories such as dining furniture and decorative accessories. 

The retailer also reported that its digital sales soared during the past 12 months with the majority of its store estate closed for much of the year.

Digital sales for the full year now make up 46% of the total, up 19% year on year and 26% on a two-year basis.

Dunelm said it now expects profit before tax for the full year will be approximately £158m, slightly ahead of analyst forecasts.

It has also said it plans to make investments in its supply chain, digital and data capabilities, customer experience and sustainability goals.

Dunelm chief executive Nick Wilkinson said: “In what has been a challenging year for Dunelm, I would like to personally thank my colleagues for their extraordinary efforts and adaptability.  

“Although our stores were closed for more than a third of the year, our strategy of investing in our digital capabilities allowed us to adapt to the changing environment and deliver strong growth.

“From what we have learned during the pandemic about our customers, colleagues, suppliers and our other stakeholders, we are more confident than ever about the opportunity to increase our market leadership and we will invest further in our proposition to support our growth ambitions.

“With many exciting developments in the pipeline to make us the first choice for home, and grow our customer base and frequency, there is a lot to look forward to.”