UK-based homeware retailer Dunelm has announced a 3% increase in third quarter (Q3) sales for the fiscal year 2024 (FY24), reaching £435m ($541m), up from £423.3m in the same period in FY23.
The retailer attributes its growth to its product offerings and a volume-driven sales strategy, despite ongoing market volatility particularly in March.
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The company experienced growth across both physical stores and digital platforms, with digital sales now accounting for 37% of the total – a one percentage point increase.
Gross margin has also seen an improvement in Q3 FY24, rising by 60 basis points during the quarter.
Dunelm’s sales have climbed to £1.30bn in FY24 to April, marking a 4% increase from the same period of FY23.
Dunelm CEO Nick Wilkinson said: “We have delivered a resilient performance in Q3, with continued volume-based sales growth through a period of more challenging and volatile market conditions.
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By GlobalData“Whilst discretionary spend remains under pressure, our relevant and attractive product offer continues to resonate with customers as they shop across our broad ranges to find quality and value for all areas of the home.
“This performance reflects our deep-rooted understanding of our customers and the effectiveness of a total retail system which continues to drive growth across store and digital channels, bringing further market share gains. At the same time, our operational grip continues to mitigate ongoing cost headwinds and has supported a strong gross margin performance.”
Looking ahead, Dunelm expects its full-year profit before tax for FY24 to align with market expectations, which currently average around £202m.
It also anticipates a year-on-year expansion of 110 basis points in full-year gross margin, indicating continued financial strength despite the challenging market.
The retailer believes that there are signs of improvement for UK consumers in some areas, but the timing of this change remains uncertain.
