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Dunelm Group PLC on Thursday celebrated a sound performance in volume-driven sales growth despite ongoing consumer caution in the UK. The Leicester, England-based homewares retailer said total sales rose 4.1% to £1.71 billion in the financial year that ended June 29 from £1.64 billion it had reported for financial 2023. In the fourth quarter, total sales were up 4.9% to £399 million from £380.5 million a year before. Dunelm expects pretax profit for the year to be slightly ahead of current market expectations, which it cites as £200 million. This would be up 3.8% from £192.7 million in financial 2023. Further, the new store opening programme was on track with six new stores opened in financial 2024, including one relocation. Dunelm anticipates full-year gross margin to be 170 basis points improved year-on-year due to net freight tailwinds. In financial 2023, gross margin had been down 110 basis points from financial 2022. Chief Executive Officer Nick Wilkinson said: ‘Amidst ongoing consumer caution, our unrelenting focus on value and choice means the Dunelm proposition has continued to resonate with customers, and we saw both full-priced and discounted lines trade well during our summer sale period.’ Looking ahead, he added: ‘Going into FY25, we have a significant opportunity ahead of us. We are finding quality sites for new stores, and are increasingly confident in our smaller format stores. We are also continuing to invest in both our digital offer and wider operations to support further market share gains. However, we will need to maintain strong operational grip given ongoing wage inflation. Notwithstanding the continuing uncertainty in our markets, we’re both excited and confident in our plans.’ Dunelm shares rose 6.4% to 1,177.00 pence each late Thursday morning in London. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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