Dunelm is ‘properly positioned’ to cushion the blow from provide chain and transport woes as gross sales continues to rise
- Group says decrease seasonal merchandise ranges will assist it keep away from provide chain points
- Buying and selling replace reveals contemporary gross sales enhance and an on-track full-year forecast
Dunelm Group has mentioned it stays upbeat about its capacity to function amid international provide chain woes and transport delays.
The homeware retailer mentioned the very fact it sells a restricted variety of seasonal merchandise, has ‘good’ inventory ranges and prospects prepared to substitute merchandise would all assist cushion the blow from wider provide chain issues.
In a buying and selling replace, the group mentioned it expects its full-year revenue to come back in at round £179million, which is in keeping with analyst forecasts.
Optimistic: Dunelm Group has mentioned it stays upbeat about its capacity to function amid international provide chain woes and transport delays
Shares within the FTSE 250-listed firm jumped in early morning buying and selling and are presently up 2.15 per cent or 28.00p to 1,328.00p. A 12 months in the past the share value was 1,557.00p, that means it has fallen by round 14 per cent prior to now 12 months.
Within the 13 week interval to 25 September, the retailer’s complete gross sales elevated by 8 per cent to £388million. Thirty-three per cent of the gross sales have been made on-line.
The group mentioned: ‘This robust efficiency was primarily pushed by the constructive buyer response to our Summer time Sale in July (which was postponed from the fourth quarter of FY21), improved product availability and a few well-liked new ranges in our furnishings classes.’
Throughout the interval, Dunelm’s gross margin was 0.1 per cent decrease in comparison with final 12 months, reflecting reductions on merchandise.
Gross margin for the primary half is predicted to be flat to barely constructive in comparison with final 12 months’s numbers, whereas full-year gross margin will drop due to the summer time and winter sale, the group mentioned.
Information from GfK revealed that Dunelm continued to outperform the homewares market and gained additional market share in every week of the quarter.
At 25 September, Dunelm had £209million value of money within the financial institution, and entry to £175million of accepted banking amenities that haven’t been used but.
On the up: Shares in FTSE 250-listed homewares retailer Dunelm have jumped at the moment
Nick Wilkinson, Dunelm’s chief government, mentioned: ‘We’re happy with our efficiency within the first quarter, with gross sales progress throughout all channels and continued market share positive aspects, particularly given the power of the comparative interval final 12 months, which benefited from pent-up demand following the primary UK lockdown.
‘We proceed to spend money on enhancing our market main proposition to win extra prospects who store extra incessantly throughout Dunelm’s increasing vary. For instance, we’ve now developed a “my favourites” performance on-line, which is one other step in getting nearer to our prospects and making their homewares procuring as straightforward as doable.
‘Within the present surroundings, our objective to assist prospects create the enjoyment of really feeling at residence feels more and more related and we’re enthusiastic about our plans to turn out to be the first alternative for residence for extra UK consumers.’
Freetrade analyst Gemma Boothroyd, mentioned: ‘Dunelm’s first-quarter outcomes appear to say it’s not only a one-hit pandemic surprise.
‘Dunelm’s working up in opposition to plenty of challenges and modifications, which is able to make it more and more arduous to achieve these peak-Covid gross sales volumes once more. Although it fared fairly properly this quarter, with gross sales not solely up on final summer time, however on the 12 months prior too.’