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Dunelm reports flat Q4 results

Dunelm shutterstock_282750725 725 x 500

Dunelm, the UK's leading homewares retailer, reports the following trading update for the 13-week period, and financial year, ended 30 June 2018.

Highlights from the update follow and the full results can be found on our Articles page, here

Revenue

Total like-for-like (LFL) revenues in the quarter were broadly flat year on year (0.1% increase). This includes a continuing strong performance in our on-line channel (Dunelm.com) which achieved growth of 41.8%. As previously indicated in our announcement on 25 May 2018, footfall in physical shops was weak in the quarter, leading to a 4.6% decline in sales in LFL stores. 

Overall revenue for the quarter showed a 1.4% decline year on year. Whilst we benefited from the strong store opening programme earlier in the financial year, this was offset by decisions to rationalise the offer in our acquired businesses of Worldstores.co.uk and Kiddicare.com - having divested Achica.com during the previous quarter.

For the year as a whole, the Group delivered LFL revenue growth of 4.2% and overall growth of 9.9%.

 

13 weeks to 30 June 2018

52 weeks to 30 June 2018

 

Revenue

(£m)

YoY Growth (£m)

YoY Growth (%)

Revenue

(£m)

YoY Growth (£m)

YoY Growth (%)

LFL Stores1

179.0

-8.7

-4.6%

805.0

+8.2

+1.0%

LFL Online2

30.0

+8.9

+41.8%

105.4

+28.9

+37.9%

Total LFL

209.0

+0.2

+0.1%

910.4

+37.1

+4.2%

Non-LFL Stores3

17.5

+8.0

 

73.7

+43.7

 

Non-LFL Online4

10.0

-11.6

 

66.0

+13.7

 

Total Dunelm Group

236.5

-3.4

-1.4%

1050.1

+94.5

+9.9%

1) LFL Stores - stores trading for at least one full financial year prior to 2 July 2017 without any significant change of space
2) LFL Online - Dunelm.com
3) Non-LFL Stores - new stores opened within the current financial year or prior financial year
4) Non-LFL Online - Worldstores.co.uk, Kiddicare.com and Achica.com. (Note, the Group acquired these businesses in November 2016; it disposed of the Achica business in February 2018)

Customers and Market

Our customer reach continues to grow.  As at the year-end, the number of active customers for Dunelm.com was up by 18% over the previous year. Despite the footfall challenge of the final quarter, the total number of visits to physical stores in the year (including the benefit of new openings) increased by 5% over the prior year. Pleasingly, we have seen strong performance in satisfaction scores across all channels.

Our data shows that we have continued to outperform the homewares market over the quarter.

There were no new store openings in the latest quarter, leaving our superstore footprint at 169 stores.  We will open two new stores (one of which is a relocation) early in the new financial year.

Comment from Nick Wilkinson, Dunelm's Chief Executive:

"I am delighted to have joined Dunelm as it gathers pace on the journey to becoming a truly multi-channel business. I firmly believe that our homewares authority, combined with our increasing ability to adapt to evolving consumer trends, means that there is very significant potential for growth of the Dunelm brand. We have expanded our customer reach and digital capabilities significantly over the last twelve months and will continue to do so as we exploit the technology assets  which we acquired with Worldstores.

I am excited about the opportunity at Dunelm and look forward to expanding on my plans for the future of this great brand when we announce our full year results in September."

Source : Dunelm
www.dunelm.com

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13 July 2018

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