Despite a challenging environment, Dunelm’s Q1 sales were down slightly on last year’s results, but 36% higher than the same period in FY 2020 (pre-pandemic).
Digital sales made up 33% of total sales in the quarter, in line with the same period last year, and the retailer said it is continuing to see robust sales from its total retail system across its categories, including a very good response to its seasonal ranges, such as ‘Winter Warm’.
Gross margin was, as expected, 130bps lower than last year, a reflection of more normal consumer behaviour patterns. Dunelm said it is maintaining tight operational grip and remains confident of delivering a full year gross margin of around 50%.
Looking forward, the retailer has said its primary focus is on continuing to offer outstanding value and choice to all its customers. Dunelm said it is confident in the resilience of the business and its guidance for 2023 remains unchanged from the preliminary results announced last month.
Nick Wilkinson, ceo, commented: “It has been another robust quarter for Dunelm against a very strong business model and the appeal of our market-leading offer.
“Dunelm has emerged from the last two years as a bigger, better business, with total sales up 36& against the same period pre-Covid. We have benefitted from the commitment, expertise and adaptability of our colleagues and supplier partners – the same qualities that are serving the business as we navigate the current inflationary challenges.
“As we enter what will clearly be a challenging winter for consumers, our absolute focus remains on making every pound count for everyone, through a tight grip on operations. We will continue to offer outstanding value at all price points, so our customers can make their own choices around adapting to the economic backdrop. This focus on value has seen Dunelm successfully navigate the previous periods of economic uncertainty.
“The landscape is a demanding one, but we feel both energised and confident in our ability to grow market share as the first choice for UK homelovers.”
