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Dunelm expects full-year profit growth after third-quarter sales boost

ALN

Dunelm PLC on Thursday reported a rise in sales during the third quarter of its current financial year, boosted by a successful start to its spring and summer ranges, as well as ‘a successful winter sale at the beginning of the period’.

The Leicestershire, England-based company which provides homewares including furniture and kitchenware said sales in the three months that ended March 29 rose to £461.9 million, up 6.3% from £434.5 million the prior year.

The firm also said that its year-to-date sales were up 3.7% to £1.36 billion.

Dunelm saw its digital participation as a percentage of total sales increase to 41% in its third quarter, compared to 37% the previous year. This was due to the company focusing on its online customer experience, utilising AI-powered search and recommendations alongside ‘strong’ click & collect sales.

The company’s third-quarter gross margin was also up 30 basis points year-on-year, adding that its full-year gross margin guidance is unchanged, at between 51.5% and 52%.

Dunelm shares rose 6.2% to 1,007.00 pence in London on Thursday morning.

Dunelm expects pretax profit for financial 2025, which is due to end June 28, to be in line with a company-compiled consensus of £208 million. This would represent a growth of 1.3% from £205.4 million the year before.

The company said it was on track to achieve its milestone of 10% market share in the medium term.

Chief Executive Officer Nick Wilkinson said: ‘We remain very mindful of the wider backdrop and the impact of increased uncertainty on consumer sentiment, but maintain our focus on strengthening Dunelm’s position as The Home of Homes.’

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