(Alliance News) - Dunelm Group PLC on Thursday said its performance deteriorated over the past financial year amid store closures caused by coronavirus.
The home furnishings retailer said total sales fell by 3.9% in the 52 weeks to June 27 to GBP1.06 billion from GBP1.10 billion reported a year earlier, resulting in a 13% fall in pretax profit to GBP109.1 million from GBP125.9 million.
Dunelm explained that the reduction in profit reflects the impact of Covid-19 and the store closure period.
The company reported a robust balance sheet with year-end net cash of GBP45.4 million, access to GBP175 million of approved banking facilities, and confirmed Covid-19 corporate financing facility eligibility.
Dunelm reported strong recent trading, with total year-on-year sales growth of 59% in July and 24% in August, partly as a result of pent up demand, the timing of its summer sale and a resilient homewares market.
The company said it is "very difficult" to provide any meaningful guidance on the future outlook given the uncertainty in the wider economy and the potential impact of further regional or national lockdowns.
"We made good progress before the onset of Covid-19, building our digital capabilities, extending our product choice and value, and broadening and deepening our customer base," said Chief Executive Nick Wilkinson.
"We remain confident in our ability to adapt to the environment and are well positioned to continue to grow market share and help even more customers create a home they love," added Wilkinson.
FTSE 250-listed Dunelm shares were trading 1.4% lower in London on Thursday at 1,442.00 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Dunelm (DNLM)