TIDMDNLM
RNS Number : 6587L
Dunelm Group plc
13 January 2016
13(th) January 2016
Dunelm Group plc
TRADING UPDATE
26 weeks to 2(nd) January 2016
Dunelm Group plc ("Dunelm" or "the Group"), the UK's leading
homewares retailer, reports the following trading update for the 26
week period to 2(nd) January 2016.
Commenting on Dunelm's performance in the period, John Browett,
Chief Executive, said:
"These trading numbers are a reasonable outcome given the
unseasonably warm weather. We have had a very strong sale after
Christmas and we expect further good progress in the second
half.
"I am really pleased to have joined Dunelm. Clearly our
proposition remains popular with customers and I look forward to
working with the team here in fully delivering the potential of the
business over the coming years."
Highlights
Revenue
13 weeks to 2(nd) January 26 weeks to 2(nd) January
2016 2016
----------------- ---------------------------------- ----------------------------------
Sales YoY Growth YoY Growth Sales YoY Growth YoY Growth
(GBPm) (GBPm) (%) (GBPm) (GBPm) (%)
----------------- -------- ----------- ----------- -------- ----------- -----------
LFL stores 205.0 5.2 2.6% 376.8 12.4 3.4%
----------------- -------- ----------- ----------- -------- ----------- -----------
Home Delivery 16.5 3.1 23.4% 28.0 5.5 24.4%
----------------- -------- ----------- ----------- -------- ----------- -----------
Total LFL* 221.5 8.3 3.9% 404.9 17.9 4.6%
----------------- -------- ----------- ----------- -------- ----------- -----------
Non-LFL stores 24.2 11.7 43.2 23.8
----------------- -------- ----------- ----------- -------- ----------- -----------
Total 245.7 20.0 8.8% 448.1 41.7 10.3%
----------------- -------- ----------- ----------- -------- ----------- -----------
* Calendar impact
Due to the 53(rd) week included in the last financial year, the
above figures include eight days of our Winter Sale, compared to
two days of Winter Sale included in the comparative period. This
has boosted LFL growth by approximately GBP10.0m (equivalent to
4.7% in the quarter and 2.6% over the half year). These impacts
will reverse in the next quarter. Therefore, adjusting for this
calendar impact, underlying LFL performance was -0.8% for the 13
weeks to 2(nd) January and +2.0% for the 26 week period.
Underlying performance
Having adjusted for the beneficial calendar impact, sales
performance in the quarter reflected:
- Reduced footfall in LFL stores which we attribute to the
particularly mild weather, partially compensated by improved
conversion and growing transaction values;
- Ongoing store portfolio expansion, with three new superstores
opened and one major refit completed;
- Continuing growth in on-line business, including a +23.4% increase in home delivery sales.
Gross Margin
Gross margin percentage growth for the half year is estimated to
be +30bps compared with the first half of last financial year. This
included the impact of Winter Sale as described above, which is
estimated to have depressed margin growth by -20bps in the quarter,
and by -10bps over the half year.
Store Portfolio
The total number of superstores trading at the period end was
151. There are seven new stores committed, as at the period end,
including two relocations. We expect three of these new stores to
open in the remainder of this financial year, taking our total
anticipated openings for the financial year to six including the
two relocations. This will bring the year-end superstore count to
152. Our medium term target remains to operate from around 200
superstores across the UK.
Financial Position
The Group remains strongly cash generative with closing net debt
of GBP48.1m (H1 15: net cash GBP61.4m), reflecting the cash
returned to shareholders in H2 15. Daily average net debt across
the half year amounted to GBP47.5m.
Ends
For further information please contact:
Dunelm Group plc 0116 2644 356
John Browett, Chief Executive
Keith Down, Chief Financial Officer
MHP Communications 020 3128 8100
John Olsen / Tom Horsman
Forthcoming Newsflow:
Dunelm will release its interim results on 10(th) February 2016.
There will be a presentation for analysts at 9.30am at the offices
of UBS, 1 Finsbury Avenue, London EC2M 2PP. Those analysts who wish
to attend are requested to contact Isabelle Grainger of MHP on the
above number or at isabelle.grainger@mhpc.com. A copy of the
presentation will be made available on the Dunelm website.
Notes
1. Like-for-like (LFL) sales represents revenues from stores
trading for at least one full financial year prior to 5(th) July
2015 and excludes stores with significant change of space in the
current or previous financial year.
2. Quarterly sales and margin analysis:
52 weeks to 2(nd) July 2016
---------------------- ------------------------------------------------------
Q1 Q2 H1 Q3 Q4 H2 FY
---------------------- ---------- ---------- ---------- --- --- --- ---
Total sales GBP202.3m GBP245.7m GBP448.1m
---------------------- ---------- ---------- ---------- --- --- --- ---
Total sales growth +12.0% +8.8% +10.3%
---------------------- ---------- ---------- ---------- --- --- --- ---
LFL sales growth +5.5% +3.9% +4.6%
---------------------- ---------- ---------- ---------- --- --- --- ---
Gross margin growth* +20bps +30bps +30bps
---------------------- ---------- ---------- ---------- --- --- --- ---
*estimated
52 weeks to 27(th) June 2015
----------------------------- ----------------------------------------------------------------------------------
Q1 Q2 H1 Q3 Q4 H2 FY
----------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total sales GBP180.6m GBP225.8m GBP406.4m GBP216.2m GBP200.1m GBP416.4m GBP822.7m
----------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total sales growth +17.0% +11.8% +14.0% +10.7% +12.1% +11.4% +12.7%
----------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
LFL sales growth +8.9% +4.2% +6.2% +4.9% +5.8% +5.4% +5.8%
----------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Gross margin growth/decline +40bps -30bps Level -10bps -100bps -60bps -30bps
----------------------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
3. Please note that the prior financial year comprised a 53 week
period running to 4(th) July 2015. Our audited financial statements
covered this 53 week period but we use figures for the 52 weeks
ending 27(th) June 2015 for comparative purposes in the above
table.
Notes to Editors
Dunelm is market leader in the GBP11bn UK Homewares market. The
Group currently operates 157 stores, of which 151 are out-of-town
superstores and 6 are located on high streets, and an on-line
store, to be found at www.dunelm.com.
Dunelm's "Simply Value for Money" customer proposition offers
industry-leading choice of quality products at keen prices, with
high levels of availability and supported by friendly service. Core
ranges include many exclusive designs and premium brands such as
Dorma, and are supported by a frequently changing series of special
buys. The superstore format provides an average of 30,000 sq. ft.
of selling space with over 20,000 products across a broad spectrum
of categories, extending from the Group's home textiles heritage
(bedding, curtains, cushions, quilts and pillows) to a complete
Homewares offer including kitchenware and dining, lighting, wall
art, furniture 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.
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 into broader
homewares categories following the opening of the first Dunelm
superstore in 1991.
Dunelm has been listed on the London Stock Exchange since
October 2006 (DNLM.L) and has a current market capitalisation of
approximately GBP1.8bn.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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