Last checked at 11 Apr 2012 07:00
11th April 2012
Dunelm Group plc ("Dunelm")
Interim Management Statement
Dunelm, the leading out-of-town specialist homewares retailer, today provides the following update on trading for the third quarter of its current financial year, comprising the 13 week period ended 31st March 2012.
Sales Revenue
13 weeks to 31st March 2012 | 13 weeks to 2nd April 2011 | 39 weeks to 31st March 2012 | 39 weeks to 2nd April 2011 | |
Total sales value | £154.1m | £139.0m | £454.0m | £414.7m |
Total sales growth | +10.7% | +9.4% | +9.4% | +8.7% |
LFL sales growth | +0.6% | -1.3% | +1.0% | -1.3% |
Contribution from new space | +10.1% | +10.7% | +8.4% | +10.0% |
Trading conditions remained challenging through the third quarter. Although we saw strong store performance in January and growth in multi-channel revenues throughout the quarter, these were partially offset by more depressed store footfall patterns in February and March.
Gross Margin
Gross margin increased by approximately 30bps compared with the third quarter of the previous year. This reflects continuing scale benefits as well as improved management of the clearance of both special buys and discontinued ranges. We now anticipate that gross margin growth for the full financial year will be approximately 20bps.
Store Portfolio
In line with our previous guidance, two new superstores were opened during the quarter, in Exeter and Stafford, the latter being a relocation of a sub-optimal existing unit. Our Greenford (West London) store opened on 5th April and a new store in Cambridge is anticipated before the end of June. This will bring the total number of new stores opened in the current financial year to 15 (including two relocations), as previously anticipated.
Looking ahead to next financial year, our new store pipeline remains encouraging with two leases signed since our last update, giving a total of six units contractually committed (including one relocation).
Financial Position
As at 31st March 2012 Dunelm had net cleared funds of £50.2m. Daily average net cleared funds over the year to date were £55.0m.
Nick Wharton, Chief Executive, commented:
"Our focus on the development of our Simply Value for Money proposition and growth both through new stores and through our multi-channel offering has seen Dunelm achieve a solid sales performance in what remains a very demanding retail environment.
"It is prudent to remain cautious about the wider economy and, recognising its impact on consumer confidence, we will maintain our disciplined approach to the management of gross margin and operating costs. However with a clear growth strategy and strong pipeline of new stores ahead we remain confident in the future prospects for the business."
Notes
1. Except for the trading activities described, there has been no significant change to the financial condition of the Group.
2. Like-for-like sales represent revenues from stores trading for at least one full financial year prior to 3rd July 2011.
Forthcoming Newsflow.
Dunelm's next scheduled trading update will be on 5th July 2012 followed by the full year preliminary results announcement on 13th September 2012.
For further information please contact:
Dunelm Group plc | 0116 2644 356 |
Nick Wharton, Chief Executive | |
David Stead, Finance Director | |
MHP Communications | 0203 128 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 124 stores, branded Dunelm Mill, of which 115 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 was listed on the London Stock Exchange in October 2006 (DNLM.L). The Group has a current market capitalisation of approximately £1.0bn with a free float of approximately 45%.