Dunelm has reported an annual rise in sales as it continues to make market share gains in the home goods sector.
The Leicester-headquartered retailer, which is a member of the FTSE 250 index, told markets that sales rose 3.8 per cent in the year to June 28, from £1.7bn to £1.77bn.
Profit before tax rose 2.7 per cent, from £205.4m to £211m, while Dunelm’s share of the homewares and furniture market rose from 7.7 per cent to 7.9 per cent.
Chief executive Nick Wilkinson said he was “pleased to report another successful year” at the company, despite a “a volatile consumer environment”.
Wilkinson, who will leave Dunelm this Autumn, added that he leaves behind “a special business, with a strong business model, well positioned for the future”.
Earlier this year, City broker Peel Hunt said Dunelm was a “coiled spring” with a “clear moat” compared to its competitors due to a combination of more products, more active customers and a much better online customer experience.
Shares in the homewares company have risen more than 27 per cent in the past six months.
Dunelm is ‘still just getting started’
Dunlem expects to grow market share further in the Autumn as it heads to its goal of 10 per cent in the medium term.
The company has opened six new superstores this year, including one in inner London, and acquired a 13-store retailer in Ireland.
Chris Beauchamp, chief market Analyst at IG, said : “Higher market share and an initial foray into inner London show that Dunelm continues to make progress, even if profit growth has slowed.
“It is also having to ramp up investment, something that will take time to bear fruit and also potentially crimp dividend growth. The shares have struggled to clear £12.50 over the last two years, but these results show Dunelm is still coping well even in a world of tight budgets for consumers.”
Wilkinson added: “Dunelm is evolving as a multi-category and multi-channel specialist, The Home of Homes, making good progress towards its next market share milestone.”
“With customers at our heart, and a commitment to long-term, sustainable growth, Dunelm is still just getting started.”
