Dunelm raises profit outlook as sales surge 59%

Dunelm's full-year profit is set to smash City forecasts as sales soar as bricks-and-mortar stores reopen and Britons look to renovate their homes ahead of the summer .

According to foreign media reports, furniture and homewares retailer Dunelm recently said its shares rose by more than 7% to 1560 pence after it raised its profit for the second time in more than a month .

Dunelm's sales surged as total sales jumped 59% in the seven weeks since March 28. It added that sales had "performed significantly" ahead of the wider market since stores reopened on April 12, with online growth remaining stable.

Impressive fourth-quarter results so far mean Dunelm now expects pre-tax profits of more than £148m, well ahead of the City's forecast of between £128m and £134m.

The retailer had already raised its annual profit forecast in early April due to better-than-expected profit growth . Dunelm said : "Such high sales growth reflects the strength of our customer proposition and a number of other factors, including pent-up demand following extended store closures, a strong homewares market and some benefit from the cold weather that has helped to bring in some spring flowers."

Dunelm has been one of the most resilient retailers during the pandemic, with sales rising 23% and profits surging by more than a third in its first half of the financial year as strong online sales helped soften the blow of having stores closed for much of the period.

UK consumer demand for homewares and DIY products has surged since the Covid-19 pandemic, as Britons have been confined to their homes and focused on renovating their homes and gardens.

The surge in the real estate market will also play to its advantage. People moving or renovating their homes will find plenty of opportunities to buy Dunelm homewares .

Dunelm said: “ It must be said that the future is challenging and Dunelm will have to enjoy the sales peak while it lasts as it cannot last forever.”

Dunelm

U.K.

Home