UK DIY News
Like-for-like sales decline at Dunelm
Dunelm Group plc ("Dunelm" or "the Group"), the UK's leading homewares retailer, reports the following trading update for the first quarter of its current financial year, comprising the 13 week period ended 1st October 2016.
Revenue
Total revenue for the first quarter fell by 1.8% to £198.7m. Total like-for-like (LFL) growth (combining LFL stores and Home Delivery) decreased by 3.8%.
As expected, unusually warm weather had a dampening effect on store footfall. We did however, continue to see good growth in the online business, including a 17.9% increase in home delivery sales. Overall, we believe that we are continuing to outperform the homewares market as a whole.
| 13 weeks to 1nd October 2016 | 13 weeks to 3rd October 2015 | ||||
| Sales (£m) | YoY Growth (£m) | YoY Growth (%) | Sales (£m) | YoY Growth (£m) | YoY Growth (%) |
LFL stores | 173.9 | -9.4 | -5.1 % | 171.8 | 7.2 | +4.4% |
Home Delivery | 13.6 | +2.1 | +17.9% | 11.5 | 2.4 | +25.9% |
Total LFL | 187.5 | -7.3 | -3.8% | 183.3 | 9.6 | +5.5% |
Non-LFL stores | 11.2 | +3.6 | - | 19.0 | 12.1 | - |
Total | 198.7 | -3.7 | -1.8% | 202.3 | 21.7 | +12.0% |
Gross Margin Percentage
Gross margin is estimated to be broadly flat when compared to the equivalent quarter last year. As yet we have not seen any material impact from adverse foreign exchange markets in relation to goods sourced directly or from third parties.
Store Portfolio
No new stores were opened in the period leaving our superstore footprint at 152 stores. We are now legally committed to ten new stores of which nine are due to open in the current financial year and four before the end of the calendar year. The current year 15 store refit programme has also commenced with three stores due to have been completed before the end of the calendar year.
Financial Position
As at 1st October 2016, net debt was approximately £83m. Daily average net debt across the period amounted to £76.5m.
Commenting on Dunelm's performance, John Browett, Chief Executive, said:
"As expected, the homewares market has fallen due to unusually warm weather and this has correspondingly impacted our store performance over the period given the reduced footfall to our out-of-town superstores. However, we have continued to focus on our value based customer proposition and are increasing our market share in homewares, whilst also seeing good growth in our online business.
"We are looking forward to a stronger second quarter as we continue to invest in extra seasonal space, new till systems, store refits and new store openings. We should also benefit from weaker comparatives.
"We continue to focus on our key initiatives whilst ensuring we maintain our unique offer of tremendous value for money, combined with an unrivalled range and great service."
Imran's Photography / Shutterstock.com
Source : Dunelm
www.dunelm.com
If your business is interested in pricing intelligence or you're currently trying to track retail prices manually, there really is a much easier way. Just contact us here.
To advertise on the Insight DIY website and download our media pack, click here.
Interested in pricing intelligence? Manually tracking retail prices? There really is a much easier way. Just contact us here.
Sign-up for our weekly newsletter here.
Thank you for the excellent presentation that you gave at Woodbury Park on Thursday morning. It was very interesting and thought-provoking for our Retail members. The feedback has been excellent.
Don't miss out on all the latest, breaking news from the DIY industry
