Dunelm Group reveals seven per cent uptick in revenue as it hikes dividend by 17 per cent

Caitlin Morrison
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Furniture group Dunelm's results were ahead of analysts' expectations (Source: Dunelm)

Furniture retailer Dunelm Group has hiked its dividend after reporting increased revenues and profits for the 52 weeks to 2 July.

The figures

Total revenues grew 7.1 per cent to £880.9m from £835.8m the year before.

Operating profit was up to £129.3m from £122.5m, a 6.6 per cent year-on-year change, while pre-tax profit was up 6.2 per cent to £128.9m from £122.6m.

Earnings per share increased by 7.4 per cent from 47.5p to 50.5p.

The company raised its dividend to 25.1p from 21.5p - a 16.7 per cent increase.

Shares in the company rose slightly in mid-afternoon trading, by 0.16 per cent to 917p.

Dunelm Group Dunelm Group | mobile image

Why it's interesting

These are the first annual results Dunelm has reported since appointing ex-Monsoon boss John Browett as chief executive last year, and his first year at the helm looks like it's been a success, with results coming in ahead of analysts' expectations. The strong full-year performance also highlights the company's resilience in bouncing back from a disappointing start to the year.

The group said revenue and profit growth was driven by an increase in market share, with an expanded store base - and it's targeting more shops in the coming 12 months.

"As part of our challenge to find 50 new stores to reach our 200 target, we recognise that London and the South East will provide a significant proportion of this opportunity," the group stated today. It also revealed it's legally committed to nine new stores in the coming year, three of which are within the M25.

What Dunelm said

"My first year as chief executive has been extremely busy and we're working hard on initiatives across the business," Browett said.

"Not least, we are investing in our stores to make them much easier to shop, whilst making sure our vast range of product maintains the value for money proposition which lies at the very heart of the Dunelm offer.

"We continue to outperform the homewares market, and despite potential challenges to the economy over the coming months and the dampening effect on footfall of recent hot weather, we believe that Dunelm's competitive position can come into its own, and are confident of continuing to deliver our growth ambitions."

In short

Dunelm isn't getting comfortable despite reporting strong results today - the group has big plans for expansion.