Dunelm said it expects profits to come in slightly ahead of expectations thanks to a strong final quarter and consistent growth across the year.
The homewares retailer reported total sales for the year edged up 4% to £1.7bn, driven by volume growth despite the “challenging consumer environment”.
As a result, it expects pre-tax profits to come in slightly ahead of current market expectations at around £200m.
It comes as final quarter sales rose 5% to £399m in the 13 weeks to 29 June, which it attributed to growth in both store and digital channels.
Dunelm said it had a good summer sale period in June “with customers finding the attractive offers they were looking for, as well as buying full priced lines, and responding well to our new products”.
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It noted sales growth was “fairly consistent” across its categories, however, it experienced softer sales in its outdoor furniture due to the extended period of cooler weather.
Dunelm chief executive Nick Wilkinson said: “We delivered another strong performance in Q4, with continued volume-driven sales growth across both store and digital channels.
“Amidst ongoing consumer caution, our unrelenting focus on value and choice means the Dunelm proposition has continued to resonate with customers, and we saw both full-priced and discounted lines trade well during our summer sale period.
“Throughout the year, we grew sales and continued to exercise tight cost control in an environment of high inflation. Our strong gross margin performance means we now expect our FY24 profit before tax to be slightly ahead of expectations.”
Wilkinson added that group had “significant opportunity ahead” as it targets new stores and are “increasingly confident in our smaller format stores”.
He added: “We are also continuing to invest in both our digital offer and wider operations to support further market share gains. However, we will need to maintain strong operational grip given ongoing wage inflation. Notwithstanding the continuing uncertainty in our markets, we’re both excited and confident in our plans.”
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