Last checked at 3 Oct 2014 07:00
3rd October 2014
Dunelm Group plc ("Dunelm") - Interim Management Statement
Dunelm, the UK's leading homewares retailer, today provides an update covering the period from 29th June 2014 to date; financial information relates to the first quarter of the current financial year, comprising the 13 week period from 29th June to 27th September 2014.
Sales & Gross Margin
13 weeks to 27th September 2014 | 13 weeks to 28th September 2013 | |
Total sales value | £180.6m | £154.3m |
Total sales growth | +17.0% | +1.7% |
LFL sales growth | +8.9% | -5.3% |
Trading was strong during the quarter, with LFL growth reflecting the relatively weak performance during the comparable quarter last year when footfall was subdued by unusually warm weather.
As anticipated, gross margin has continued to increase year on year, with an estimated 40 basis points rise compared with the equivalent quarter last year.
Store Portfolio
As at 27th September, the estate comprised 137 superstores across the UK, including one store opened in the quarter. A total of 11 further openings are under contract, including one relocation, and all of these are expected to commence trading in the current financial year.
Financial Position
As at 27th September 2014 net cleared funds amounted to £63.0m. Daily average net cleared funds over the quarter were £35.2m.
Will Adderley, Chief Executive, commented:
"Our sales performance has been strong in the first quarter, driven partly by soft comparatives from last year but also by the strength of the Dunelm offer and an increasing awareness of that offer across the UK.
"As we look forward, our focus is very much on driving sales. We intend to capitalise on the significant investments we have made, and continue to make, across our business to underpin long term growth; and we intend to keep on delivering excellent value and service to our customers. Despite the inevitable short-term impact of those investments, I am confident that we can continue to deliver significant profitable growth over the years to come."
Notes
1. Like-for-like (LFL) sales represents revenues from stores trading for at least one full financial year prior to 29th June 2014 and excludes stores with significant change of space in the current or previous financial year.
2. Quarterly sales and margin analysis:
52 weeks to 27th June 2015 | |||||||
Q1 | Q2 | H1 | Q3 | Q4 | H2 | FY | |
Total sales | £180.6m | ||||||
Total sales growth | +17.0% | ||||||
LFL sales growth | +8.9% | ||||||
Gross margin growth | +40bps* |
| |||||
*estimated
52 weeks to 28th June 2014 | |||||||
Q1 | Q2 | H1 | Q3 | Q4 | H2 | FY | |
Total sales | £154.3m | £202.0m | £356.3m | £195.4m | £178.4m | £373.8m | £730.2m |
Total sales growth | +1.7% | +7.3% | +4.8% | +9.9% | +12.0% | +10.9% | +7.8% |
LFL sales growth | -5.3% | +2.9% | -0.9% | +5.0% | +5.5% | +5.3% | +2.1% |
Gross margin growth | +70bps | +120bps | +90bps | +90bps | +50bps | +70bps | +80bps |
3. Note that the current financial year is a 53 week period running to 4th July 2015. Our audited financial statements will cover the 53 week period but we will also disclose figures for the 52 weeks ending 27th June 2015 for comparative purposes.
- Ends -
For further information please contact:
Dunelm Group plc | 0116 2644356 |
Will Adderley, Chief Executive | |
David Stead, Finance Director | |
MHP Communications | 020 3128 8100 |
John Olsen / Simon Hockridge / Naomi Lane | dunelm@mhpc.com |
For photography, please contact MHP Communications
Notes to Editors
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.
Since then, Dunelm has grown to become market leader in the £11bn UK homewares market. The Group currently operates 144 stores, of which 137 are out-of-town superstores and 7 are located on high streets, and an on-line store, to be found at www.dunelm.com.
Dunelm's customer proposition offers industry-leading choice of quality products at keen prices, with high levels of availability and supported by expert, 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 a made to measure curtain service, including in-home consultation and using its own UK manufacturing facility, together with an authoritative selection of curtain fabrics on the roll in stores. The value, breadth of choice and expertise inherent in the proposition are communicated to customers via the strapline "There's no place like Dunelm".
Dunelm has been listed on the London Stock Exchange since October 2006 (DNLM.L) and has a current market capitalisation of approximately £1.6bn.