Dunelm “emerging stronger” from pandemic

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Dunelm “emerging stronger” from pandemic

Homewares giant Dunelm has said it is "emerging stronger" from the pandemic despite a fall in both its revenue and pre-tax profits for its latest financial year.

The Leicestershire-headquartered listed retailer has reported a revenue of £1.057bn for the 12 months to 27 June 2020, down 3.9 per cent from £1.100bn in its previous financial period.

The company's pre-tax profits also dipped 13.3 per cent from £125.9m to £109.1m.

In a statement to the London Stock Exchange, Dunelm added that its online sales grew 105.6 per cent in the fourth quarter while for the first two months of FY21 store footfall has been "positive" and digital sales were 31 per cent of total sales, with online sales growth of about 130 per cent compared to the prior year.

Chief executive Nick Wilkinson said: "We made good progress before the onset of Covid-19, building our digital capabilities, extending our product choice and value, and broadening and deepening our customer base.

"These unprecedented times have confirmed the strength of the Dunelm business model, with our integrated online and out-of-town stores proposition, broad product range, long-term supplier relationships, strong cash generation and operational grip.

"Our colleagues have been an inspiration throughout, living our shared values, and I would like to thank them all for their adaptability and resilience.

"These recent months have taught us about our ability to innovate at pace and we are emerging stronger as a result, giving us the confidence to accelerate our strategic priorities, all of which focus on being customer 1st.

"Growth in the first two months of the new financial year has been significantly ahead of our expectations, reflecting both pent up demand following the store closure period and a resilient homewares market.

"Our customers have adapted quickly to shopping safely in our mainly out-of-town superstores and we continue to see strong growth in our home delivery offer.

"Whilst the year to date performance has been materially ahead of our initial expectations, it is very difficult to provide any meaningful guidance on the future outlook given the uncertainty in the wider economy and the potential impact of further regional or national lockdowns.

"However, we remain confident in our ability to adapt to the environment and are well positioned to continue to grow market share and help even more customers create a home they love."

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