Last checked at 5 Oct 2011 07:00
5th October 2011
Dunelm Group plc ("Dunelm") - Interim Management Statement
Dunelm, the leading out-of-town specialist homewares retailer, today provides an update covering the first quarter of its current financial year, comprising the 13 week period from 3rd July to 1st October 2011.
Sales & Gross Margin
13 weeks to 1st October 2011 | 13 weeks to 2nd October 2010 | |
Total sales value | £133.4m | £126.7m |
Total sales growth | +5.3% | +11.6% |
LFL sales growth | -2.0% | +2.1% |
Contribution from new space | +7.3% | +9.5% |
In what remains a difficult consumer environment, we have maintained market share on a LFL basis over the quarter based on data from the British Retail Consortium. As anticipated, gross margin has continued to increase year on year although at a reduced rate, with an estimated 50 basis points rise compared with the equivalent quarter last year.
Store Portfolio
One new superstore was opened during the first quarter, at Dartford, bringing the estate to 104 superstores across the UK. We have recently added a further store to this year's pipeline and now anticipate a full year opening programme totalling 15 stores. Ten new stores are scheduled for the second quarter with four more locations committed and expected to commence trading in the second half of the financial year.
The committed openings include two freehold units, acquired in 2010, where we will close existing superstores in order to move to superior locations. One further freehold has been acquired during the quarter and this will be a new trading location.
We have completed two major refits in the quarter, with substantial increases in selling space. These stores have been excluded from LFL reporting and will become LFL stores again only from July 2013.
Financial Position
As at 1st October 2011 net cleared funds amounted to £34.3m, after funding the freehold acquisition referred to above and after completing the development of the new head office. Daily average net cleared funds over the quarter were £43.1m.
Nick Wharton, Chief Executive, commented:
"Despite the challenges provided by the UK consumer environment, our Simply Value for Money proposition continues to resonate with customers in both established and new stores. Given the current environment we continue to take a disciplined approach to operating costs. Nevertheless, we remain confident about the growth opportunities provided both from store expansion and via the web, where we have just completed the launch of full Reserve and Collect functionality."
Notes
1. Like-for-like sales represents revenues from stores trading for at least one full financial year prior to 3rd July 2011 and excludes stores with significant change of space in the current or previous financial year.
- Ends -
For further information please contact:
Dunelm Group plc | 0116 2644 356 |
Nick Wharton, Chief Executive | |
David Stead, Finance Director | |
MHP Communications | 020 3128 8100 |
John Olsen / Simon Hockridge |
For photography, please contact MHP Communications.
Notes to Editors
Dunelm is the UK's leading specialist out of town homewares retailer, operating in the £12bn homewares market. The Group currently operates 113 stores, branded Dunelm Mill, of which 104 are out-of-town superstores and 9 are located on high streets, and an on-line store, to be found at www.dunelm-mill.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 c.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 employs c.6,500 full and part time staff, the vast majority of whom work in the stores and was listed on the London Stock Exchange in October 2006 (DNLM.L). The Group has a current market capitalisation of approximately £900m.