Dunelm to beat profit forecasts after ‘strong’ online and store sales

Homeware and furnishings retailer Dunelm has said it expects to beat original profit forecasts for the year as it cheered the launch of its new digital platform.

The retailer said the move to a new website did not impact its sales performance, allowing it to maintain strong online sales.

It added that margins were better than predicted on the back of “sourcing gains and better sell through”.

Dunelm said its operational costs have also been “well controlled” over the recent period to bring costs in line with expectations.

However, the company said its increase in profit expectations is on the assumption that there is “no significant change in consumer demand as a result of the outcome of the General Election”.

The retailer was launched in 1979 before floating on London Stock Exchange in 2006, and has now grown to have around 170 sites across the UK.

In its previous performance update, Dunelm warned it saw “mixed” trading in September due to a “softer homeware market”.

It posted a 7.5% rise in total sales to £262.6 million for the three months to September 28, while like-for-like sales increased by 6.4% to £255.6 million over the period.

In the new update on Thursday, Dunelm said it has recently “maintained strong sales growth online and in stores”.

It said online sales have been bolstered by the “successful transition” of all customers on to the new digital site. It added customers have responded well to the new platform.

Dunelm said it will provide shareholders with a more detailed trading update at the start of January.