Dunelm Group PLC (LSE:DNLM) expects full-year profit before tax to come in “slightly ahead of expectations”, the FTSE 250-listed home furnishings retailer said in a fourth-quarter trading update.
The company noted increased volumes in the final quarter of 2024, with total sales edging up 5%.
On a full-year basis, sales grew only 4%, although margins improved by 1.7% due to lower year-on-year freight rates.
Dunelm expects the consumer outlook to improve in the year ahead, but warned that “the impact and timing on our markets remains unpredictable”.
Chief executive Nick Wilkinson stated: "We have a significant opportunity ahead of us. We are finding quality sites for new stores, and are increasingly confident in our smaller format stores.
“We are also continuing to invest in both our digital offer and wider operations to support further market share gains.
“However, we will need to maintain strong operational grip given ongoing wage inflation. Notwithstanding the continuing uncertainty in our markets, we're both excited and confident in our plans."
Dunelm's share price flew 7% higher in response to the increased profit guidance, hitting an 11-month high of 1,185p.