Dunelm Regulatory News (DNLM)

28 Apr 2009 07:00



28th April 2009

Dunelm Group plc ("Dunelm")

Interim Management Statement

Dunelm, the leading out-of-town specialist homewares retailer, announces an interim management statement for the 43 weeks to 25th April 2009.

Sales

Sales over the 43 weeks grew by 4.3% compared to the equivalent period in the previous financial year, with like-for-like ("LFL") sales declining by 2.5%. In the 17 week period since the half year, total sales have grown by 7.4% and LFL sales have grown by 2.3%.

The Board believes that Dunelm has continued to gain market share on a LFL basis. 

Gross Margin

Gross margin performance has remained strong and the gain reported at the half year has increased by a further 10bps to 110bps for the year to date. This reflects successful clearance of discontinued lines without excessive markdowns during the winter sale, as well as a continuing focus on special buy merchandise.

Store Portfolio

New superstores have been opened so far this half in Worcester and Workington, with the old format high street store in Worcester being closed. In addition we have completed refits in four stores since Christmas. Trading in these stores has exceeded expectations so far. 

Including these changes, the total number of superstores is now 81, with a further 12 high street stores. We anticipate one further superstore opening before the year-end (bringing the total to six for the financial year) and we have signed leases for seven units due to open in FY10. 

  Financial Position

As at 27th April 2009, cleared funds at bank amounted to £35.0m. The daily average balance of cleared funds is £9.7m for the financial year to date.

Will Adderley, Chief Executive, commented:

"Our 'Simply Value For Money' offering continues to attract customers and we are pleased with performance so far this period. Our strategy remains consistent and we still see plenty of opportunity to use our financial strength to roll out our successful superstore format across the UK." 

Dunelm will announce a trading update on 14th July 2009 and its preliminary results for the 53 weeks ending 4th July 2009 on 16th September 2009.

ENDS

For further information please contact:

Notes to Editors 

Dunelm is amongst the top 10 retailers operating in the £12bn UK homewares market. The Group has 93 stores, branded Dunelm Mill, of which 81 are out-of-town superstores. Dunelm employs over 5,500 full and part time staff, the vast majority of whom work in the stores.

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 in the Midlands specialising in soft furnishings. The first Dunelm superstore was opened in 1991, leading to the Company's move into the broader homewares market.

The superstores provide an average of 28,000 sq ft of selling space and offer an extensive range of approximately 20,000 products across a broad spectrum of categories, including bedding, curtains, gifts and seasonal items, cushions, bathroom products, kitchenware, quilts, pillows and rugs. Dunelm also specialises in offering a wide range of fabrics, made to measure curtains and a frequently changing series of special buys. The directors are passionate about ensuring that all ranges live up to Dunelm's philosophy of offering customers "Simply Value for Money".

Dunelm also has an on-line store (www.dunelm-mill.com) with over 11,000 products available.

Dunelm is listed on the London Stock Exchange (DNLM.L).