Dunelm remains ‘cautious’ as Q4 revenues jump 15%

Homewares retailer Dunelm has reported a 15.4% increase in total like-for-like (LFL) revenue for the 13-week period ended 29 June 2019.

The retailer said the increase reflects “strong” underlying growth in stores and online, the benefit of a “weak comparator” period last year and favourable weather this year. Life-for-like store revenue also increased by 12.1% during the period, and online revenue continued to “grow strongly” during the quarter, up 37%.

However, Dunelm’s CEO, Nick Wilkinson, said the company “remains cautious” about the “uncertain” political climate and the impact it may have on consumer spending, but expects to make further progress in the year ahead and is “confident” about the group’s longer-term prospects.

Wilkinson said: “In the year that Dunelm turned 40, we are delighted that both new and existing customers continue to respond positively to our evolving offer. The strong growth in the final quarter, and the year as a whole, demonstrates that in a rapidly changing marketplace, the broad appeal of Dunelm’s purpose ‘to help everyone create a home they love‘ is resonating well.

“We continue to invest in the business, particularly in strengthening our digital capabilities and reaching more customers through our brand marketing initiatives.”

He added: “Looking forward, as the UK’s leading homewares specialist, we see significant opportunity for continued growth both from our stores and online, whilst maintaining our improved operational discipline.”

The retailer has also appointed Ian Bull as a non-executive director, with immediate effect. He will be a member of the audit and risk, remuneration and nominations committees.

Bull has over 20 years’ business and financial experience with a range of consumer-facing businesses. This includes senior roles as group finance director of Greene King, chief financial officer at Ladbrokes plc, and latterly chief financial officer of Parkdean Resorts Group.

He is currently the senior independent director and chair of the audit committee of St. Modwen Properties, and non-executive director and chair of the audit committee at Domino’s Pizza Group.

Chairman of Dunelm, Andy Harrison said: “I am delighted to welcome Ian to the board. Given his broad business and financial leadership background and board and committee experience, he will be a valuable addition to Dunelm.”