Published on 27 - April - 2010
Trading slows at Dunelm after strong EasterHomewares retailer reports a slowdown in sales over past four months, despite year-to-date figures up 19.9%, bolstered by strong Easter promotion.
Dunelm posted sales of £405.7m for the 42 weeks ended April 24. The 102-strong retailer's sales were boosted by the Easter period, with a growth of 3% over the 9 weeks since its last trading update in February this year. However, the company admitted that comparatives for the rest of the year would become "significantly more demanding", with a like-for-like growth in the final 10 weeks of last year up 9.5%
Sales over the past 16 weeks were up 10.9% compared with a total sales growth of 19.9% for the year so far. Gross margin growth for the year to date also stands at 180bps, while the rate has reduced over recent weeks to 80bps.
Dunelm chief executive Will Adderley commented; "We are satisfied with our overall performance so far this half, although trade has slowed somewhat after a good Easter."
Dunelm opened 10 new stores over the past year, including the latest additions in Dundee and Bolton, while stores in Bolton and Barrow in Furness will open in May. Eight further sites have already been committed to and will open in the company's next financial year. It has also competed two major refits in its stores since Christmas, with a further three already underway.
The Dunelm board has previously stated that it believes the UK can "support" a chain of between 150-200 Dunelm superstores.
Mr Adderley added: "I am particularly pleased about the way customers continue to react to our new and refitted stores. This underlines the level of growth still available to us from new space as well as from upgrading our existing estate."
DIYWeek.net does not edit comments which are submitted directly by our users to express their own views. Please report abuse of our comment system here.
© Datateam Business Media Limited 2010. DIY Week.net news articles may be copied or forwarded for individual use only. No other reproduction or distribution is permitted without prior written consent.