Dunelm backs FY profit expectations as Q3 sales jump

Homeware retailer Dunelm backed its pre-tax profit expectations for the full year on Thursday as it posted a 6% jump in third-quarter sales amid strong demand.

The company said that after adjusting for the timing of the Winter sale, third-quarter sales rose 6% from the same period a year earlier to £423m. Sales in the year to date were 5% higher at £1.3bn.

Dunelm said its Winter sale resonated particularly well with its "savvy home-loving customers".

"We performed well during Q3, with strong trading throughout the period, including a successful Winter Sale, and good demand for our new collections for spring and summer," it said. "Whilst the consumer outlook remains unpredictable, we remain focussed on strengthening our customer offer to provide unbeatable choice and value for every space, style and budget."

The retailer backed its FY23 pre-tax profit expectations, which are expected to be in line with analyst consensus of £185m.

Chief executive Nick Wilkinson said: "We are seeing strong momentum in the business as customers continue to appreciate the quality and value across the Dunelm range, despite a challenging trading backdrop. This was apparent through our successful Winter Sale and the positive launch of our new ranges for spring and summer as customers look forward to longer days and outdoor living.

"As we continue to seize the many opportunities we see, we are investing for the long term and making good progress against our plans, which include the ongoing development and extension of our product ranges, building our customer data platform and optimising our marketing channels. These plans give us good confidence for ongoing success."