Dunelm reveals FY profits surged 34.9% to £212m

Dunelm has revealed its profit before tax for the 53 weeks to 2 July 2022 has risen 34.9% to £212.8m from the same period in FY21.

Total sales reached £1.5bn, up 18.4% YOY, while diluted earnings per share rose 32.9% to 83.6p.

Among the highlights were a homewares market share gain of 140bps and continued share gains in furniture. Meanwhile, its active customers grew by 8.5% over the year, with increases across all demographics.

Going forward, the company said it expects to deliver a 50% gross margin for the full year and manage costs through efficiency improvements and operational grip, and that it remains on track to deliver FY23 results in line with analysts’ expectations.

Nick Wilkinson, chief executive officer, said: “Our colleagues and our committed supplier partners are at the heart of our success. In another year of excellent performance, I am extremely grateful for their skill, commitment and adaptability in the face of new external challenges and during another busy period of progress across the business.

“We feel confident and well prepared to weather the current economic pressures – we emerged from an unprecedented global pandemic as a bigger, better business and we believe we have the tools in place to do that again. That said, the operating and economic environment is extremely challenging.”

He added: “In this environment, we have to make every pound count, both for ourselves through our tight operational grip and cost discipline, and for our customers, through our offer of outstanding value at all price points.

“Dunelm, at its heart, offers customers great choice and value. Now is not the time for us to shy away from that, but for us to fully embrace it; whether it’s our Winter Warm collection or our Student Essentials range, we think Dunelm’s unique and market-leading offer is more relevant than ever before.”