In a trading update for the 13-week period ended 29th June 2019, Dunelm reports that its total LFL revenue for Q4 increased by +15.4%, which the retailer attributes to strong underlying growth in stores and online, a weak comparator period last year, and favourable weather this year.
LFL store revenue increased by +12.1%, while LFL online revenue on Dunelm.com continued to grow strongly in the quarter, up +37.0%. Dunelm expects its full-year profit before tax to be towards the upper end of its expected range (£126m).
There were two new store openings towards the end of the quarter (including one relocation), increasing Dunelm's store footprint to 170 superstores. It expects to open two new stores (including one relocation) in the first half of FY20, and is set to transfer to a new digital platform during the next financial year.
Nick Wilkinson, Dunelm's CEO, says: "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.
"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. In the short-term, we remain cautious about the uncertain political climate and the impact it may have on consumer spending, but expect to make further progress in the year ahead and are confident about the froup's longer-term prospects."
In other news, Ian Bull has been appointed to Dunelm's board as a non-executive director, and will be a member of the Audit and Risk, Remuneration and Nominations committees. He has over 20 years' business and financial experience with a range of leading consumer-facing businesses.