Dunelm FY pre-tax profit seen 'slightly' ahead of consensus views

Homeware retailer Dunelm said on Thursday that full-year pre-tax profit was set to be "slightly" ahead of analyst consensus as it hailed a solid performance in the fourth quarter despite tough comparatives.

In an update, the company said total sales for FY22 rose 16% on the previous year to £1.55bn, with digital sales more than 2.5x higher than pre-Covid levels.

Dunelm referred to itself as "a bigger and better business" post Covid, with total sales more than 40% higher than FY19, driven by significant market share gains.

As a result, full-year pre-tax profit is set to be slightly ahead of consensus expectations of £207m. Dunelm said its performance reflects both the particularly strong profitability in the first half, when store sales bounced back following re-opening, and robust trading in the second half.

Sales in the final quarter of the year were down 6% versus the same period a year ago, and slightly ahead of analyst expectations. Dunelm said strong sales in the comparative period were driven by pent-up demand after the re-opening of its stores in April 2021, following the third national lockdown.

Chief executive Nick Wilkinson said: "The macro outlook remains uncertain and we cannot predict exactly how consumers will respond to the increasing pressures on their finances.

"We are currently seeing customers adapt to this environment in their own ways, utilising the breadth of our offer and price points across homewares; value and choice has always been at the very core of Dunelm, and we are intensely focused on continuing to strengthen this for our customers."