Dunelm sees higher earnings in 2024 as annual profits fall 7.8%

UK homewares retailer Dunelm reported a 7.8% fall in annual profits as hard-pressed shoppers reined in spending amid the cost-of-living crisis, but expects earnings growth this year on higher volumes.

Pre-tax profit for the 12 months to July 1 came in at £192.7m from £209m a year earlier while sales rose 5.5% to £1.6bn.

A final ordinary dividend of 27p a share was declared taking the full year payout to 42p a share, a rise of 5%. A special 40p dividend was paid in April.

The company said it was “pleased” with trading early in the new financial year, despite “unpredictable” consumer behaviour, and added it expected to see 2024 sales and earnings growth, driven by volume as easing freight costs supported gross margins and a tight operational grip on costs helped mitigate ongoing inflation.

"In a period of extensive economic uncertainty, we have maintained our focus on enhancing our customer proposition, expanding our offer whilst staying fully committed to value and making every pound count. This has clearly resonated well with our customers, enabling us to continue growing both sales and market share,” said chief executive Nick Wilkinson.

Reporting by Frank Prenesti for Sharecast.com