Dunelm Group plc, the UK's leading homewares retailer, has released its third-quarter trading update for the 13-week period ending 30 March 2024. The report highlights a 3% increase in total sales to £435 million, driven by volume, with growth in both store and digital channels. The company's digital sales participation also increased by 1 percentage point to 37%. Despite a challenging sales environment, Dunelm expects its full-year profit before tax (PBT) to be broadly in line with market expectations.
The company's gross margin increased by 60 basis points year-on-year, and it anticipates a full-year gross margin expansion of approximately 110 basis points. Dunelm continues to strengthen its customer offer as the 'Home of Homes' and has successfully launched its spring/summer product ranges alongside a brand marketing campaign. The company remains on track to hit its store openings target for the fiscal year, with a focus on developing its digital customer proposition and enhancing operational efficiency.
Nick Wilkinson, Chief Executive Officer of Dunelm, expressed confidence in the company's ability to navigate current market conditions while delivering sustainable growth and market share gains. Despite the unpredictable nature of consumer behavior, the company remains optimistic about strengthening its customer offer and the growth opportunities it presents.
In conclusion, Dunelm Group plc's trading update reflects a resilient performance, with continued volume-based sales growth and strategic progress amidst challenging and volatile market conditions. The company's commitment to enhancing its customer proposition and operational efficiency positions it well for future opportunities and sustained growth.