Dunelm Group plc, the UK's leading homewares retailer, has announced its preliminary results for the 52 weeks to 1 July 2023. The company reported total sales of £1.64 billion, a 5.5% increase compared to the previous year. Digital sales accounted for 36% of total sales, a 1% increase from the previous year. The company also reported a gross margin of 50.1% and an operating costs to sales ratio of 38.0%. Profit before tax was £192.7 million, a decrease of 7.8% compared to the previous year. Diluted earnings per share were 75.0p, an 8.6% decrease from the previous year.
Highlights from the financial year include strong sales growth of 6%, a further 40bps market share gain in the homewares and furniture markets, and an increase in active customers by 2.8%. The company opened three new stores and made progress on its Pathway to Zero commitments, including reductions in carbon intensity and plastic packaging use. The company also engaged in community initiatives, such as take-back services and charity fundraising.
In terms of financial performance, Dunelm reported record sales of £1.64 billion and a gross margin of 50.1%. The company invested over £20 million in digitalizing its operations and saw a free cash flow of £160.4 million. The company declared a final ordinary dividend of 27p per share, bringing the full year ordinary dividend to 42p per share, a 5% increase from the previous year. In total, the company returned £163 million to shareholders during the year.
Looking ahead, Dunelm is pleased with its early trading in the new financial year. The company expects to see sales and profit growth in FY24, driven by volume. Easing freight costs are expected to support gross margin, and the company will continue to invest in its customer offer, retail system, and marketing ecosystem to support sustainable growth. The company remains confident in its plans to seize opportunities in the short, medium, and long term.