TIDMDNLM
RNS Number : 2455T
Dunelm Group plc
11 October 2017
11 October 2017
Dunelm Group plc
First Quarter Trading Update and Capital Markets Event
Dunelm Group plc ("Dunelm" or "the Group"), the UK's leading
homewares retailer, reports the following trading update for the
first quarter of its current financial year, comprising the 13-week
period ended 30 September 2017.
Revenue
Total revenue for the first quarter rose by 24.8% to GBP247.9m.
Total like-for-like (LFL) revenue grew by 9.3%.
13 weeks to 30 September
2017
------------------- ----------------------------------
Revenue YoY Growth YoY Growth
(GBPm) (GBPm) (%)
------------------- -------- ----------- -----------
LFL stores(1) 194.4 11.9 6.5%
------------------- -------- ----------- -----------
LFL Online(2) 19.9 6.3 46.2%
------------------- -------- ----------- -----------
Total LFL 214.3 18.2 9.3%
------------------- -------- ----------- -----------
Non-LFL stores(3) 12.8 10.3 -
------------------- -------- ----------- -----------
Non-LFL Online(4) 20.7 20.7 -
------------------- -------- ----------- -----------
Total Dunelm
Group 247.9 49.2 24.8%
------------------- -------- ----------- -----------
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
Commenting on Dunelm's performance, Andy Harrison, Chairman,
said:
"We have maintained the good momentum from the final quarter of
the last financial year. Our like-for-like sales were boosted by
favourable weather comparatives and, pleasingly, we continue to
outperform the homewares market, with strong growth across the
business, especially online.
"The integration of the Worldstores business continues on plan,
with good progress in the quarter. We are well on the way to
becoming a genuine multi-channel retailer, with 16% of sales in the
quarter online (19% including Reserve and Collect).
"We head into the second quarter having opened a number of new
stores and with an improved seasonal offer for the Christmas
period, which we're sure will resonate well with customers."
Gross Margin
Our Group gross margin in the quarter was in line with our
expectations, being 220bps lower than last year for two reasons.
Firstly, the mix effect of the addition of lower margin Worldstores
sales reduced gross margin by 120bps. In addition, as previously
highlighted, our focus on newness in our latest ranges and the
planned higher seasonal sales mix impacted margins in the quarter
by 100bps; this is not expected to continue. For the full year we
expect the Dunelm gross margin, combining store and online, to be
in line with the prior year. The Group (including Worldstores)
margin will be down slightly reflecting the mix effect of
Worldstores.
Store Portfolio
We opened five new stores in the period, taking our superstore
footprint to 165 stores. We are now legally committed to a further
five new stores, one of which is a relocation, all of which are due
to open before the end of the calendar year.
We continue to grow our presence in the South-East and London
and now have 11 stores inside the M25.
Financial Position
As at 30 September 2017, net debt was approximately GBP130m.
Daily average net debt across the period amounted to GBP115m.
Capital Markets Event
We are holding a Capital Markets Event today, at our new
warehouse in Stoke, for analysts and institutional investors. The
agenda will include Dunelm's sales aspirations for the future with
presentations from the operational team on Dunelm's business goals
to support this growth and progress on the Worldstores integration.
No new material information will be provided. The presentations
from the day will be available at
http://dunelm.production.investis.com/investor-relations/reports-and-presentations/2017.aspx
Ends
For further information please contact:
Dunelm Group plc 0116 2644439
Keith Down, Chief Financial
Officer
MHP Communications 020 3128 8139
Tim Rowntree / Simon Hockridge dunelm@mhpc.com
/ Gina Bell
Next scheduled events:
The Q2 trading update will be on 16 January 2018.
The half year results announcement will be on 20 February
2018.
Notes
1. Quarterly sales and margin analysis (prior year restated to include Worldstores):
52 weeks to 30 June 2018
-------------- ----------------------------------------
Q1 Q2 H1 Q3 Q4 H2 FY
-------------- ---------- --- --- --- --- --- ---
Total sales GBP247.9m
-------------- ---------- --- --- --- --- --- ---
Total sales
growth 24.8%
-------------- ---------- --- --- --- --- --- ---
LFL sales
growth 9.3%
-------------- ---------- --- --- --- --- --- ---
Gross margin -220bps
growth*
-------------- ---------- --- --- --- --- --- ---
52 weeks to 1 July 2017
-------------- ----------------------------------------------------------------------------------
Q1 Q2 H1 Q3 Q4 H2 FY
-------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total sales GBP198.7m GBP261.9m GBP460.5m GBP255.1m GBP240.0m GBP495.1m GBP955.6m
-------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total sales
growth -1.8% 6.6% 2.8% 11.4% 17.7% 14.4% 8.5%
-------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
LFL sales
growth -3.8% 0.2% -1.6% -2.2% 3.8% 0.6% -0.5%
-------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Gross margin 0bps -60ps -35bps -75bps -195bps -130bps -90bps
growth*
-------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Gross margin 0bps +10ps +5bps +75bps -75bps 0bps 0bps
growth**
-------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
*estimated group margin growth
**estimated underlying/pre-acquisition margin growth
Notes to Editors
Dunelm was founded in 1979 as a market stall business, selling
ready-made curtains. The first shop was opened in Leicester in 1984
and over the following years the business developed into a
successful chain of high street shops before expanding, following
the opening of the first Dunelm superstore in 1991, into broader
homewares categories. Dunelm is now a multi-channel retailer, with
Dunelm.com being launched in 2005 and the acquisition of the
Worldstores Group accelerating this yet further. Today, around 20%
of sales are generated online.
Dunelm is market leader in the GBP12bn UK homewares market and
active in the GBP11bn UK furniture market. It currently operates
169 stores, of which 165 are out-of-town superstores and 4 are
located on high streets, and online stores, the largest of which
can be found at www.dunelm.com, www.worldstores.co.uk,
www.kiddicare.com and www.achica.com. Dunelm employs approximately
10,000 colleagues and sells around 30,000 product lines in store,
increasing to around 300,000 online.
Dunelm, "The Home of Homes", offers a customer proposition of
style, value, quality and ease of shopping. From its textiles
heritage, in areas such as bedding, curtains, cushions, quilts and
pillows, Dunelm has rapidly broadened its product offering to a
complete homewares offer including the likes of kitchenware,
dining, lighting, seasonal, wall art and rugs. Dunelm is one of the
few national retailers to offer an authoritative selection of
curtain fabrics on the roll, and owns a specialist UK facility
dedicated to producing made-to-measure curtains.
The product range includes many, exclusive, own brand designs
and premium brands such as Dorma, Fogarty and Kiddicare. This is
augmented by a range of other well-known brands and license
agreements.
Dunelm has been listed on the London Stock Exchange since
October 2006 (DNLM.L) and has a current market capitalisation of
approximately GBP1.4bn.
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTBLBDGSDBBGRG
(END) Dow Jones Newswires
October 11, 2017 02:00 ET (06:00 GMT)
Dunelm (LSE:DNLM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Dunelm (LSE:DNLM)
Historical Stock Chart
From Apr 2023 to Apr 2024
