Dunelm Group plc has released its trading update for the 13-week period ended 29 June 2024 and the full year. The company reported a 5% sales growth in the final quarter, driven by both store and digital channels. The full-year total sales grew by 4%, with a 170bps increase in gross margin. The profit before tax (PBT) for FY24 is expected to be slightly ahead of market expectations, reflecting the company's resilience and agility in a challenging year.
The company's strong performance in the final quarter was attributed to increased volumes in both store and digital channels, with digital participation reaching 40%. Despite a challenging consumer environment, Dunelm focused on offering outstanding value and quality, resulting in market share gains. The summer sale period in June was successful, with customers responding well to attractive offers and new products, although outdoor furniture sales were impacted by cooler weather.
Throughout the year, Dunelm concentrated on expanding its product offering and enhancing the customer experience. The company opened six new stores in FY24, including a relocation, and continued to invest in its digital platform, introducing new features to improve the customer experience. Operational capability was also enhanced with the opening of a new depot in Barnsley to better serve the Home Delivery Network.
Looking ahead, Dunelm remains confident in its ability to deliver further market share gains over the medium term. The company is optimistic about the opportunities ahead, underpinned by its commitment to long-term investment in its product, customer proposition, and business capabilities to ensure sustainable growth.
Nick Wilkinson, Chief Executive Officer of Dunelm, expressed satisfaction with the company's performance, emphasizing the focus on value and choice that resonated with customers. He highlighted the company's strong gross margin performance, leading to the expectation of FY24 profit before tax being slightly ahead of expectations. Looking forward to FY25, Wilkinson expressed confidence in the significant opportunities ahead, including new store openings and the potential of smaller format stores.
In conclusion, Dunelm Group plc's trading update reflects a strong performance in Q4 and the full year, driven by volume-driven sales growth, increased gross margin, and a positive outlook for the future.