Retailer Results / Dunelm

14/09/2016

Dunelm

Full Year Results
52 weeks to 2 July 2016

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07/07/2016

Dunelm

Trading Update
13 weeks to 2 July 2016 and 2 weeks to 2 July 2016

Highlights

13 Weeks to 2 July 2016
• LFL stores down -2.0 per cent
• Home delivery up +16.8 per cent
• Total LFL up -0.6 per cent
• Total up +1.8 per cent

2 Weeks to 2 July 2016
• LFL stores down +1.0 per cent
• Home delivery up +23.2 per cent
• Total LFL up +2.5 per cent
• Total up +7.1 per cent

Summary

Total revenue for the fourth quarter grew by 1.8 per cent to £203.8m. Total like-for-like (LFL) growth (combining LFL stores and Home Delivery) decreased by 0.6 per cent, although this was adversely impacted by a combination of an earlier Easter and the fact that the previous financial year included a 53rd week. Adjusting for these calendar impacts, underlying LFL performance was +2.9 per cent for the 13 weeks to 2nd July 2016.

Gross margin for the quarter was approximately 80bps higher than the comparator period, largely due to improved stock management and end of season product clearance. Management’s expectation is that gross margin for the full financial year will be approximately 60bps ahead of the prior year.

The total number of superstores trading at the period end was 152. They opened two more new stores, in Nottingham and Sheffield, in the final quarter, both replacing existing stores (relocations). This took total new store openings for the financial year to six, leaving the year-end superstore count at 152. Dunelm are currently committed to a further seven new store openings, including one in London, which are likely to take place in the next financial year.

John Browett, Chief Executive, said: "I am pleased to report another solid quarter of underlying growth, particularly given the more difficult retail trading environment which we believe has seen the Homewares market decline in the quarter. Overall, therefore, we are continuing to increase our share of that market through our focus on delivering everyday value and excellent service for customers.

"The current uncertainty makes the future trajectory of the economy and consumer confidence unclear; however, we are confident that Dunelm, as market leader, will continue to strengthen its position through its low cost operating model, everyday value, consistent cash generation and strong balance sheet.

"We remain focused on delivering key projects across the business and are excited about substantially improving the business for our customers, both in store and online, over the medium term, and continuing to develop Dunelm into a truly national homewares brand."


07/04/2016

Dunelm

Trading Update
13 Weeks to 2 April 2016

Highlights

13 Weeks to 2 April 2016
• LFL stores down -0.8 per cent to £187.0m
• Home delivery up +27.6 per cent to £17.9m
• Total LFL up +1.1 per cent to £204.9m
• Total up 5.9 per cent to £229.0m

39 Weeks to 2 April 2016
• LFL stores up +2.0 per cent to £563.8m
• Home delivery up +25.6 per cent to £45.9m
• Total LFL up +3.4 per cent to £609.8m
• Total up 8.7 per cent to £677.1m

Summary

These are solid results from the market leader in Homewares who continued to benefit from strong market performance, although the performance slowed on the previous 39 weeks.

Homewares continues to be one of the strongest performing sectors in retail and Dunelm are outperforming the overall market. Dunelm has continued to focus on its three-part growth strategy of growing LFL sales, rolling out new stores and growing online. There was reportedly strong footfall in LFL stores driven by Winter Sale performance while improved conversion and higher transaction values year-on-year contributed to growth. The ongoing store portfolio expansion saw one new superstore opened and a number of medium-sized refits completed. The online business continued to deliver strong growth and home deliveries were up 27.6 per cent. We see plenty of scope to increase penetration in online for the business and the high exposure to out of town locations bear well for the ongoing popularity of click-and-collect options.

Gross margin for the quarter was approximately 90bps higher than the comparator period, largely due to improved stock management and reduced cost of end of season product clearance, together with the beneficial impact of six days less Winter Sale in the quarter which was worth approximately 30bps.

John Browett, Chief Executive, said: "We are pleased with the strong underlying sales growth during the last quarter following the unhelpful, mild conditions experienced in Q2. Overall we continue to increase our Homewares market share.

"We have enjoyed a good Easter, are looking forward to a successful final quarter and are confident of achieving our expectations for the full year.

"We continue to work hard on delivering our key projects across the business and remain excited about substantially improving the business for our customers, both in store and online, over the medium term, and developing Dunelm into a truly national homewares brand."


10/02/2016

Dunelm

Trading Update
26 week period to 2nd January 2016

Highlights

Key Numbers

26 Weeks to 2 January 2016
• Total LFL up +4.6 per cent to £404.9m (£387.0m FY15 H1)
• LFL store sales up +3.4 per cent year-on-year to £376.8m (£364.5m FY15 H1)
• Home Delivery sales up +24.4 per cent year-on-year to £28.0m (£22.5m FY15 H1)
• Total sales up 10.3 per cent to £448.1m (£406.4m FY15 H1)

13 Weeks to 2 January 2016
• Total LFL up +3.9 per cent to £221.5m
• LFL store sales up +2.6 per cent year-on-year to £205.0m
• Home Delivery sales up +23.4 per cent year-on-year to £16.5m
• Total sales up 8.8 per cent to £245.7m

Summary

These are solid results from the market leader in Homewares who continued to benefit from strong market performance, supported by a buoyant housing market.

According to the BRC, the Furniture, Flooring and Homewares sectors saw some of the strongest growth throughout 2015. Further, given that 151 of the 157 stores are located in “out-of-town” complexes, they have also benefited from renewed strength in footfall as other channels such as shopping centres and high streets have faded.

Dunelm has continued to focus on its three-part growth strategy of growing LFL sales, rolling out new stores and growing online. It has made progress on all fronts with LFL growth underpinned by strong performance from curtains and bedding, ongoing store portfolio expansion and an increasing focus on London and home delivery was up +24.4 per cent.

Due to the 53rd week included in the last financial year, the above figures include eight days of the Winter Sale, compared to two days of Winter Sale included in the comparative period. This has boosted LFL growth by approximately £10.0m (equivalent to 4.7 per cent in the quarter and 2.6 per cent over the half year). These impacts will reverse in the next quarter.

Gross margin percentage growth for the half year was estimated to be +30bps compared with the first half of last financial year. This included the impact of Winter Sale as described above, which is estimated to have depressed margin growth by -20bps in the quarter, and by -10bps over the half year.

John Browett, Chief Executive, said: "It is a really exciting time to be at Dunelm - a business built on a strong foundation of exciting product and design, unrivalled knowledge of the homewares market, a low-cost store network, great people and investment in systems.

"Our focus remains on growing the business for the longer term. After making good progress so far, we are continuing to work towards our three part growth strategy and are now focused on eight core projects that will enable us to achieve this. This will allow us to improve our business substantially for our customers and, as we increase both our store network around London and our online presence, to develop Dunelm into a truly national homewares brand.

"After a solid performance in the first half, we had a strong sale after Christmas and we expect further good progress in the remainder of the year."


13/01/2016

Dunelm

Trading Update
26 week period to 2nd January 2016

Highlights

26 Weeks to 2 January 2016
• Total LFL up +4.6 per cent to £404.9m
• LFL store sales up +3.4 per cent year-on-year to £376.8m
• Home Delivery sales up +24.4 per cent year-on-year to £28.0m
• Total sales up 10.3 per cent to £448.1m

13 Weeks to 2 January 2016
• Total LFL up +3.9 per cent to £221.5m
• LFL store sales up +2.6 per cent year-on-year to £205.0m
• Home Delivery sales up +23.4 per cent year-on-year to £16.5m
• Total sales up 8.8 per cent to £245.7m

Summary

These figures are a little weaker than expected with underlying performance -0.8 per cent for the 13 weeks to 2nd January and +2.0 per cent for the 26 week period.

Due to the 53rd week included in the last financial year, the above figures include eight days of the Winter Sale, compared to two days of Winter Sale included in the comparative period. This has boosted LFL growth by approximately £10.0m (equivalent to 4.7 per cent in the quarter and 2.6 per cent over the half year). These impacts will reverse in the next quarter.

Footfall was down (LFL) which is attributed to the particularly mild weather, partially compensated by improved conversion and growing transaction values. Nevertheless, there was ongoing store portfolio expansion, with three new superstores opened and one major refit completed. Online continued to power ahead with home delivery sales up +23.4 per cent.

Gross margin percentage growth for the half year was estimated to be +30bps compared with the first half of last financial year. This included the impact of Winter Sale as described above, which is estimated to have depressed margin growth by -20bps in the quarter, and by -10bps over the half year.

The total number of superstores trading at the period end was 151. There are seven new stores committed, as at the period end, including two relocations.

John Browett, Chief Executive, said: "These trading numbers are a reasonable outcome given the unseasonably warm weather. We have had a very strong sale after Christmas and we expect further good progress in the second half.

"I am really pleased to have joined Dunelm. Clearly our proposition remains popular with customers and I look forward to working with the team here in fully delivering the potential of the business over the coming years."


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