Dunelm Group plc Trading Update (3618P)
May 25 2018 - 6:56AM
UK Regulatory
TIDMDNLM
RNS Number : 3618P
Dunelm Group plc
25 May 2018
25 May 2018
Dunelm Group plc
Trading Update
Dunelm Group plc ("Dunelm" or "the Group"), the UK's leading
homewares retailer, is providing an update on current trading.
Revenue
Following a good performance in the first three quarters of the
financial year, the Group has recently experienced trading
conditions which have been materially more challenging than had
been expected, within a soft homewares market. These conditions
have impacted our trading performance.
As a result of reduced footfall to stores, LFL store sales are
-4.7% in the quarter to date. LFL online sales (Dunelm.com) in the
same period are +43.7%, resulting in total LFL sales of +0.1% in
the quarter to date. Non LFL online sales (WorldStores, Kiddicare
and Achica) have continued to reduce, as expected, partly
reflecting the disposal of the Achica business.
Therefore we currently expect total sales for the full year to
be in the region of GBP1,050m, an increase of approximately +10% on
the prior year (2017: GBP955.6m).
Gross Margin
We remain on track to achieve strong gross margin growth from
trading in the fourth quarter.
Outlook
Taking into account the trading conditions in the quarter to
date and a more cautious outlook for the remainder of the financial
year, we currently believe that underlying profits for the year are
likely to be moderately below those delivered last year (2017:
GBP109.3m).
Commenting on Dunelm's performance, Nick Wilkinson, Chief
Executive, said:
'We have seen an unexpectedly challenging start to the fourth
quarter, with continuing softness in the homewares market and
reduced footfall to our stores. We are making good progress on our
strategic plans to be a truly multi-channel retailer and further
strengthen our customer offer. We will learn from recent trading
and I remain optimistic about our ability to deliver strong sales
and profit growth in the future.'
Ends
1. This announcement contains inside information as defined in
Article 7 of the Market Abuse Regulation No. 596/2014 ("MAR").
For further information please contact:
Dunelm Group plc 0116 2644439
Nick Wilkinson, Chief Executive
David Stead, Chief Financial
Officer
MHP Communications 020 3128 8789
Tim Rowntree / Simon Hockridge dunelm@mhpc.com
Next scheduled events:
Dunelm's Q4 trading update will be on 12 July 2018. The full
year results announcement will be on 12 September 2018.
Notes
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
172 stores, of which 169 are out-of-town superstores and 3 are
located on high streets, and online stores, the largest of which
can be found at www.dunelm.com, www.worldstores.co.uk and
www.kiddicare.com. Dunelm employs approximately 10,000 colleagues
and sells around 30,000 product lines in store, increasing to over
100,000 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 GBP1.25bn.
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END
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