Dunelm share price rises as it reports strong final quarter

 
Caitlin Morrison
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Dunelm's home delivery sales were strong last year (Source: Flickr/Richard Says)

Dunelm said like-for-like sales dipped last year, but it finished on a strong note with a good final quarter.

The figures

In a trading update today, the home furnishings store said like-for-like store sales went up 1.3 per cent in the final quarter of the last financial year, while home delivery sales rose 32.1 per cent. Total like-for-likes went up 3.8 per cent.

For the full year, store sales were down 2.4 per cent and home delivery increased by 23.5 per cent. Total like-for-likes for the year dipped 0.5 per cent.

Profit for the year is expected to be in between £109m and £111m.

Why it's interesting

Shares in the group went up 3.4 per cent in early trading, despite the group admitting that sales did not follow expectations.

Dunelm said it expected approximately 1.5 per cent of LFL sales to move from the third to the fourth quarter as a result of Easter falling later in the year. Sales over the Easter period were, however, seven per cent lower than the prior year which equated to a 1.7 per cent adverse impact on LFL growth, thus offsetting the timing benefit.

What Dunelm said

"We've seen a good quarter of trade with positive like-for-like sales growth and a very strong online performance. Encouragingly, we continue to take market share," said chief executive John Browett.

"We continue to invest in the business for the longer term to improve our customer proposition and infrastructure and, despite an uncertain consumer environment, we go into the next financial year with some good momentum."

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