Last checked at 2 Oct 2013 07:00
2nd October 2013
Dunelm Group plc ("Dunelm")
Interim Management Statement
Dunelm, the UK's leading homewares retailer, today provides an update covering the period from 30th June 2013 to date; financial information relates to the first quarter of the current financial year, comprising the 13 week period from 30th June to 28th September 2013.
Sales & Gross Margin
13 weeks to 28th September 2013 | 13 weeks to 29th September 2012 | |
Total sales value | £154.3m | £151.8m |
Total sales growth | +1.7% | +13.8% |
LFL sales growth | -5.3% | +3.0% |
Trading was volatile during the quarter with a marked reduction in footfall during the unusually warm weather reflecting Dunelm's status as a destination visit for discretionary homewares shopping. Accordingly the first four weeks of the period showed a significant decline in sales on a LFL basis. We returned to LFL growth over the remainder of the quarter.
As anticipated, gross margin has continued to increase year on year, with an estimated 70 basis points rise compared with the equivalent quarter last year. This reflects the benefit of increased direct sourcing compared with last year, as well as the cleaner inventory position at the start of the financial year following margin investments made in the second half of the previous year.
Store Portfolio
The estate currently comprises 126 superstores across the UK. Having committed to two further stores since our preliminary results announcement, a total of 12 further openings are now under contract, including two relocations. Six new stores are anticipated to commence trading prior to Christmas.
Financial Position
As at 28th September 2013 net cleared funds amounted to £75.4m. Daily average net cleared funds over the quarter were £57.1m. As recently announced, a special dividend amounting to £50.7m (25.0p per share) will be paid on 11th October 2013.
Nick Wharton, Chief Executive, commented:
"As previously indicated, the hot weather made it a difficult start to the quarter for Dunelm with trading in the early weeks significantly affected by lower footfall. A return to like-for-like growth over the remainder of the quarter underlines the quality and strength of the Dunelm offer and we continue to see good opportunities for growth both through new stores and multi-channel. The development of our customer offer continues, including a major TV advertising trial now under way which is designed to communicate better our market leading proposition."
- Ends -
Notes
1. Like-for-like sales represents revenues from stores trading for at least one full financial year prior to 30th June 2013 and excludes stores with significant change of space in the current or previous financial year.
For further information please contact:
Dunelm Group plc | 0116 2644356 |
Nick Wharton, 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 is market leader in the £11bn UK homewares market. The Group currently operates 135 stores, branded Dunelm Mill, of which 126 are out-of-town superstores and 9 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 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.