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Dunelm has welcomed record sales in its full-year results, with revenues up by 5.5% to £1.64bn, despite profits falling over the period.
In the year ended 1 July 2023, profits fell by 7.7% to £192.7m, though the group said this was “particularly pleasing given the impact of operating cost inflation and our ongoing investment in the business”, adding that the result still reflected its tight control of margin.
Dunelm attributed its strong sales to cost reductions on over 1,000 products made during the period, as well as the “strength and relevance” of its product range, which it said helped to boost sales and win market share.
The retailer also continued to focus on growth over the year, investing more than £20m in digitalising end-to-end operations and growing capability to “seize multiple future opportunities”.
In addition, active customers grew by 2.8% over the period, with improved customer retention, while three new stores opened.
Looking ahead, the group said consumer behaviour remains unpredictable, but it still expects to see growth in both FY24 sales and profit.
It added that it will continue to keep a “tight operational grip” to help mitigate ongoing inflation in operating costs, and that it has “never been more confident in its plans to seize opportunities in the short, medium and long term”.
CEO Nick Wilkinson said: “In a period of extensive economic uncertainty, we have maintained our focus on enhancing our customer proposition, expanding our offer whilst staying fully committed to value and making every pound count.
“This has clearly resonated well with our customers, enabling us to continue growing both sales and market share. As ever, our amazing colleagues have been at the heart of this performance and I thank them all for their knowledge, personality, commitment and enthusiasm.”
He added: “As we manage the ongoing challenges, it is crucial that we do not lose sight of our longer-term ambitions. We are committed to raising the bar on value and joy for our customers and continuing to invest where we see good returns, so that we can seize the various opportunities ahead.”
