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The Markets
by Proactive
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Retail

Dunelm boosts profits but warns of tough times ahead

Homeware retailer increases sales by 2.5% to £880.9mln

Homeware retailer Dunelm Group plc (LON:DNLM) reported higher annual sales and profits but warned of potential challenges ahead.

Dunelm said sales rose 2.5% to £880.9mln in the year to July 2 while pre-tax profits increased 6.2% to £128.9mln.

But while home delivery sales lifted 23.2%, in-store like-for-like sales rose just 1%.

The group increased its full-year dividend by 16.7% to 25.1p.

Dunelm opened six shops during the year and plans to open another nine this year.

Chief executive John Browett said: "We continue to outperform the homeware market, and despite potential challenges to the economy over the coming months and the dampening effect on footfall of recent hot weather, we believe Dunelm's competitive position can come into its own."

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