Home furnishing retailer Dunelm has reported another ‘strong’ year, maintaining its record of continues annual growth in turnover and profit for the last decade.
According to its results for the 52 weeks to 2 July 2016, Dunelm saw total revenues rise by 7.1% to £880.9m, with like-for-like sales up by 2.5%.
Dunelm said that its gross margin had improved by +60bps to 49.8% for the year, whilst also registering a pre-tax profit of £128.9m up by 6.2% from £122.6m recorded in 2015. Dunelm reported a strong free cashflow, up 26.9% to £110.4m.
Highlighted within its report, Dunelm revealed that continued delivery across all three areas had improved, with in-store like-for-like growth of 1%, as well as achieving a 23.2% uptick in home delivery sales, now representing 7% of total revenue – up from 6.1% last year.
During the period under review, Dunelm opened six new stores bringing its footprint to 152 outlets across the UK, as well as opening one new warehouse in Stoke, which has doubled capacity and reduced costs.
Looking ahead, Dunelm said it plans to refit 15 stores in FY17 with its new store format design, following successful introductions this year, as well as using the format in its new openings.
John Browett, chief executive, commented: “The business has performed well over the year. My first year as chief executive has been extremely busy and we’re working hard on initiatives across the business. Not least, we are investing in our stores to make them much easier to shop, whilst making sure our vast range of product maintains the value for money proposition, which lies at the very heart of the Dunelm offer.
“We remain particularly focused on extending the Dunelm offer to more customers and have opened six new superstores in the year. This will be ramped up in the current year with nine planned openings, three of which are in the London area where we are excited by the clear opportunity for growth.”