Dunelm sales increase but spending 'remains under pressure'

Dunelm sales increase but spending 'remains under pressure'

The Dunelm boss said consumer spending “remains under pressure” despite the home goods retailer revealing growth over the past quarter.

Shares in Dunelm Group fell in early trading after the company highlighted a “challenging sales environment.”

The company told investors on Thursday that sales rose 3% to £435m in the 13 weeks to March 30, with growth accelerating from the previous quarter.

Nick Wilkinson, chief executive of the Leicester-based company, said: “We delivered resilient results in the third quarter, continuing volume-based sales growth through a period of more difficult and volatile market conditions.

“While discretionary spending continues to be under pressure, our relevant and attractive product proposition resonates with customers who shop our wide range of products for quality and value in every area of ​​the home. I keep calling.”

Portloe Woven Gingham Green Duvet Cover & Pillowcase Set, DunelmPortloe Woven Gingham Green Duvet Cover & Pillowcase Set, Dunelm

Dunelm has 183 stores across the UK (Dunelm/PA)

Mr. Dunelm said sales were supported by higher volumes as shoppers bought more items as industry-wide inflation eased.

However, it added that the home goods and furniture market remained “challenging”.

“As has been widely reported, trading conditions continue to be unstable, with demand levels particularly weak in March,'' the company said.

Dunelm said this year's trading is expected to be in line with this year's targets, but full-year profit margins are expected to be higher than expected as the company manages the potential impact of additional shipping costs associated with the Red Sea disruption. Ta.

The company, which has 183 stores in the UK, also noted “signs that the outlook for UK consumers may be softening in some areas”.

Mr Wilkinson added: “Looking to the future, we are excited about the wide range of growth opportunities this presents as we enhance our service to our customers.

“While consumer behavior remains difficult to predict, we remain confident in our ability to successfully navigate the current situation while achieving further sustainable growth and market share gains.”

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *