Trading Update

RNS Number : 0602Z

Dunelm Group plc

19 May 2021

 

19 May 2021

Dunelm Group plc

Trading update

Dunelm Group plc ("Dunelm" or "the Group"), the UK's leading homewares retailer, provides an update on recent trading for the first seven weeks of the fourth quarter (commencing 28 March 2021).

Total sales increased by 59% on a 2-year basis against the equivalent period in FY19 (noting that stores were closed in the comparative FY20 period).  Sales growth has been very strong since the majority of our stores re-opened on 12^th April and we continue to see good digital growth from our home delivery and Click & Collect channels.

This high sales growth reflects the strength of our customer proposition and a variety of other factors including pent up demand following the extended store closure period, a buoyant homewares market and some benefit from the unseasonably cold Spring weather.  In the five weeks s ince our stores re-opened, we have performed significantly ahead of the market[1].

As a result of this recent performance, the Board expects full year profit before tax (PBT) will be significantly ahead of the latest range of analysts' expectations[2]. Whilst there is still some uncertainty in the short-term outlook, we anticipate FY21 PBT will be in excess of £148m.

This announcement contains inside information as defined in EU Regulation No. 596/2014 and is in accordance with the Company's obligations under Article 17 of that Regulation.  The person responsible for this announcement is  Laura Carr, CFO.

For further information please contact:

Dunelm Group plc	[e-mail]
Nick Wilkinson, Chief Executive Officer Laura Carr, Chief Financial Officer
MHP Communications	07709 496 125
Simon Hockridge / Rachel Mann / Pete Lambie	[e-mail]

Next scheduled event:

Dunelm expects to release its fourth quarter trading update on 14 July 2021. 

Notes to Editors

Dunelm was founded in 1979 as a market stall business, selling ready-made curtains. The first shop was opened in Leicester in 1984 and over the following years the business developed into a successful chain of high street shops before expanding, following the opening of the first Dunelm superstore in 1991, into broader homewares categories. Dunelm is now a multi-channel retailer, with dunelm.com being launched in 2005.

Dunelm is market leader in the £14bn UK homewares market and active in the £12bn UK furniture market. It currently operates 175 stores, of which the majority are out-of-town, and trades online through dunelm.com . Dunelm employs approximately 10,000 colleagues and sells approximately 50,000 product lines (including store and online exclusives).

Dunelm, 'The Home of Homes', offers a customer proposition of style, value, quality and ease of shopping. From its textiles heritage, in areas such as bedding, curtains, cushions, quilts and pillows, Dunelm has broadened its product range to a complete homewares offer including the likes of kitchenware, dining, lighting, seasonal, wall art and rugs. Dunelm is one of the few national retailers to offer an authoritative selection of curtain fabrics by the metre and owns a specialist UK facility dedicated to producing made-to-measure curtains and blinds.

The product range includes many exclusive, own brand designs and owned premium brands such as Dorma and Fogarty. This is augmented by a range of other well-known brands and licence agreements.

Dunelm has been listed on the London Stock Exchange since October 2006 (DNLM.L) and has a current market capitalisation of approximately £3bn.

 

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[1] Based on management's estimates using weekly GfK Homewares market data.

[2]Management understand the range of analysts' estimates (which have been updated since the Q3 trading statement on 8^th April 2021) for FY21 Profit Before Tax (PBT) is £128m-£134m.

 

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