Homewares retailer Dunelm has revealed stronger sales despite cautioning that it is “yet to see” a sustained recovery in consumer spending.
The company said it navigated a “volatile” consumer backdrop and rising operating costs as it also delivered an improvement in profits for the past year.
In boss Nick Wilkinson’s final set of results before leaving the firm, he said the business has made “good progress” despite pressure on consumer finances.
He told the PA news agency the group saw cost inflation of around 3% over the past year, and said it could move slightly higher to 4% for the current year amid higher labour costs following last year’s autumn budget.
However, he stressed the business had seen “minimal” price inflation for shoppers, focusing on its value in order to maintain positive customer demand.
Dunelm, which employs around 12,000 people, reported that sales grew 3.8% to £1.77 billion for the year to June 28.
The retail chain said this included stronger furniture sales, while it also benefited from positive trading through its website and rising click and collect orders.
It added the business is “pleased with early trading in the new financial year”, but flagged it is “yet to see signs of a sustained consumer recovery”.
Meanwhile, the business also reported a pre-tax profit of £211 million for the year, up 2.7% on the previous year.
Mr Wilkinson said: “In my final set of results at Dunelm, I’m pleased to report another successful year, marked by growth in sales and profits, increased market share and meaningful strategic progress.
“Having had the privilege of being a part of this awesome business, I want to thank our incredible colleagues, whose commitment and adaptability has driven our performance this year and throughout our history.
“We’ve learned to navigate a volatile consumer environment, raising the bar on what really matters to our customers – delivering amazing value and helping them to create stylish, joyful and hard-working homes.
“With a thriving digital offer, vibrant stores, and a broadening category offer, we’re finding new and meaningful ways to be relevant in our customers’ lives.”
Next month, Clodagh Moriarty will join the firm from Sainsbury’s to take over the chief executive role.
Shares in Dunelm dropped by 5.8% in early trading on Tuesday.
