Last checked at 8 Oct 2015 07:00
8th October 2015
Dunelm Group plc ("Dunelm")
Trading update
Dunelm, the UK's leading homewares retailer, today provides an update covering the period from 5th July 2015 to date; financial information relates to the first quarter of the current financial year, comprising the 13 week period from 5th July to 3rd October 2015.
Sales & Gross Margin
| 13 weeks to 3rd October 2015 | 13 weeks to 27th September 2014 | ||||
| Sales (£m) | YoY Growth (£m) | YoY Growth (%) | Sales (£m) | YoY Growth (£m) | YoY Growth (%) |
LFL stores | 171.8 | 7.2 | +4.4% | 153.9 | 9.1 | +6.3% |
Home Delivery | 11.5 | 2.4 | +25.9% | 9.2 | 4.2 | +83.8% |
Total LFL | 183.3 | 9.6 | +5.5% | 163.1 | 13.3 | +8.9% |
Non-LFL stores | 19.0 | 12.1 | - | 17.5 | 13.0 | - |
Total | 202.3 | 21.7 | +12.0% | 180.6 | 26.3 | +17.0% |
Trading was strong during the quarter both in-store and on-line, with all categories showing robust performance.
Gross margin increased year on year, with an estimated +20 basis points rise compared with the equivalent quarter last year.
Store Portfolio
As at 3rd October, the estate comprised 149 superstores across the UK, including one store opened in the quarter. A total of 10 further openings are under contract, including two relocations, and six of these are expected to commence trading in the current financial year.
Fogarty Brand Acquisition
We are pleased to announce the acquisition of the Fogarty brand and trademarks on a worldwide basis. Fogarty, which can trace its history back almost 200 years, is a leading British brand with a reputation for high quality pillows, duvets and mattress protection products. Dunelm currently sells a number of Fogarty products both through our stores and on-line.
Financial Position
As at 3rd October 2015 net debt amounted to £59.8m. Daily average net debt over the quarter was £58.6m.
Will Adderley, Chief Executive, commented:
"Our sales performance was strong in the first quarter, reflecting the steps we have taken to refresh our product range, improve seasonal merchandise and to create an improved shopping experience for our customers in-store.
"The growth achieved in LFL store sales is particularly pleasing, and we maintained a solid performance in home delivery following the launch of our new website in July. As the new site becomes fully bedded down, we expect to see substantial further growth through this channel.
"I am delighted that we have acquired the rights to the Fogarty brand. This investment, as with the acquisition of Dorma a few years ago, adds an important brand to our portfolio. It further strengthens our specialist homewares retail proposition and provides a number of potential growth opportunities for the medium term."
Notes
1. Like-for-like (LFL) sales represents revenues from stores trading for at least one full financial year prior to 5th July 2015 and excludes stores with significant change of space in the current or previous financial year.
2. Quarterly sales and margin analysis:
| 52 weeks to 2nd July 2016 | ||||||
| Q1 | Q2 | H1 | Q3 | Q4 | H2 | FY |
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Total sales | £202.3m |
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Total sales growth | +12.0% |
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LFL sales growth | +5.5% |
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Gross margin growth | +20bps* |
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*estimated
| 52 weeks to 27th June 2015 | ||||||
| Q1 | Q2 | H1 | Q3 | Q4 | H2 | FY |
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Total sales | £180.6m | £225.8m | £406.4m | £216.2m | £200.1m | £416.4m | £822.7m |
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Total sales growth | +17.0% | +11.8% | +14.0% | +10.7% | +12.1% | +11.4% | +12.7% |
LFL sales growth | +8.9% | +4.2% | +6.2% | +4.9% | +5.8% | +5.4% | +5.8% |
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Gross margin growth/decline | +40bps | -30bps | Level | -10bps | -100bps | -60bps | -30bps |
3. Please note that the prior financial year comprised a 53 week period running to 4th July 2015. Our audited financial statements covered this 53 week period but we use figures for the 52 weeks ending 27th June 2015 for comparative purposes in the above table.
- Ends -
For further information please contact:
Dunelm Group plc | 0116 2644356 |
Will Adderley, Chief Executive |
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David Stead, Chief Financial Officer |
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MHP Communications | 020 3128 8100 |
John Olsen / Simon Hockridge / Naomi Lane | dunelm@mhpc.com |
For photography, please contact MHP Communications
Notes to Editors
Dunelm is market leader in the £11bn UK Homewares market. The Group currently operates 155 stores, of which 149 are out-of-town superstores and 6 are located on high streets, and an on-line store, to be found at www.dunelm.com.
Dunelm's "Simply Value for Money" customer proposition offers industry-leading choice of quality products at keen prices, with high levels of availability and supported by friendly service. Core ranges include many exclusive designs and premium brands such as Dorma, and are supported by a frequently changing series of special buys. The superstore format provides an average of 30,000 sq. ft. of selling space with over 20,000 products across a broad spectrum of categories, extending from the Group's home textiles heritage (bedding, curtains, cushions, quilts and pillows) to a complete Homewares offer including kitchenware and dining, lighting, wall art, furniture and rugs. Dunelm is one of the few national retailers to offer an authoritative selection of curtain fabrics on the roll, and owns a specialist UK facility dedicated to producing made-to-measure curtains.
Dunelm was founded in 1979 as a market stall business, selling ready-made curtains. The first shop was opened in Leicester in 1984 and over the following years the business developed into a successful chain of high street shops before expanding into broader homewares categories following the opening of the first Dunelm superstore in 1991.
Dunelm has been listed on the London Stock Exchange since October 2006 (DNLM.L) and has a current market capitalisation of approximately £1.8bn.