Strong online performance and the immanent re-opening of stores in England and Wales has seen Dunelm raise its profits forecast.
The chain says it expects pre-tax profits for the year to the end of June to be ‘modestly’ higher than the £125m forecast by analysts, despite the lockdown store closures.
In the quarter to 27 March it achieved 83.2% of 2020’s sales, largely through click and collect and home delivery, with sales of £236.6m.
However, it said it had missed out on sales to supermarkets and diy chains that had been deemed essential retailers.
The much smaller winter sale saw gross margins grow by 30bps, and it expects margins to be higher in this quarter than 2020.
‘In a quarter when we were largely unable to open our stores, it has been very encouraging to see the strength of our digital channels which have enabled us to cover over 83% of sales from the same period last year. This resilient performance is testament to the commitment and dedication of our teams, who continue to adapt and innovate the Dunelm customer proposition,’ says Nick Wilkinson, Dunelm ceo.
‘We are now looking forward to re-opening, with colleagues ready to welcome back customers through our doors. We have worked hard to rebuild inventory levels and our stores are well stocked across our extensive product range. The entire Dunelm team is excited to be able to offer our full proposition once again. With all stores soon to be fully open, combined with our ever-improving digital offering, we look forward to helping our customers to create a little more joy in their homes and gardens this summer.’
