UK homeware retailer Dunelm has reported a 5% increase in total sales for the fourth quarter (Q4) of the fiscal year 2024 (FY24), reaching £399.5m ($517.8m) compared with £380.5m in the same period of FY23.
This growth was primarily driven by increased volumes.
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The retailer’s performance was bolstered by gains in both store and digital channels, with digital sales now accounting for 40% of total sales, a one percentage point increase from the same quarter of the previous year.
For the full fiscal year 2024, Dunelm’s total sales climbed to £1.70bn, a 4% rise from £1.63bn in FY23.
This period’s digital sales represented 37% of the total sales, slightly up from 36% in the preceding fiscal year.
The company anticipates that its profit before tax for the full year will exceed current market expectations, with a consensus estimate of £200m.
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By GlobalDataDunelm expects its gross margin to be 170 basis points higher than in the previous year.
Dunelm CEO 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.
In Q4 FY24, Dunelm opened a new store in Brighton and relocated its Edinburgh store to a more favourable location, contributing to a total of six new store openings for the year.
The new stores, which include superstores and smaller formats, have shown promising early results.
“Going into FY25, we have a significant opportunity ahead of us. We are finding quality sites for new stores and are increasingly confident in our smaller format stores,” Wilkinson added.
“We are also continuing to invest in both our digital offer and wider operations to support further market share gains.”
In its third quarter FY24 result, released in April 2024, the retailer announced a 3% increase in sales, reaching £434.5m ($541m), up from £423.3m in the same period of FY23.
