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05 July 2012 10:47
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Specialist homeware retailer Dunelm has said that it is likely to beat City expectations, predicting pre-tax profit to come in at £96 million compared to forecasts of £91.6 million.
The group said that approximately £2.5 million of the outperformance was attributable to the "exceptional weather benefit" over the second half of the financial year.
In a statement, the group said: "The attractiveness of our customer offer – based on deep choice and excellent value – enabled us to deliver robust underlying revenue growth in the final quarter of the financial year. Like-for-like sales growth was exceptionally strong, boosted by the unusually wet weather over much of the quarter, which ensured consistently strong footfall into stores."
Dunelm added that its pipeline for new superstores was strong, with a total of 10 stores contractually committed, one of which will be a relocation within an existing catchment.
Nick Wharton, chief executive, commented: "The final quarter has seen further strong progress throughout the business, with robust like-for-like sales trends. In addition, we have continued to drive growth through new stores and our multi-channel offering, which now represents around 3% of revenue. Our continued focus on developing our 'Simply Value for Money' proposition has seen further market share gains.
"Looking ahead, we anticipate that consumer spending will remain under pressure. Nevertheless, with 10 further store openings committed, a strengthening multi-channel offering and with our unique proposition resonating with a wide range of customers, we remain confident in the future growth prospects for the business."
