Dunelm Group PLC on Tuesday reported modest growth in annual pretax profit and sales, but said consumer confidence in the UK remains ‘lacklustre’.
The Leicestershire, England-based company which provides homewares including furniture and kitchenware said pretax profit rose 2.7% to £211.0 million in the 52 weeks to June 28 from £205.4 million the year prior. Diluted earnings per share increased 3.2% to 76.8 pence from 74.4p.
Revenue climbed 3.8% to £1.77 billion from £1.71 billion as market share of the combined homewares and furniture markets rose to 7.9% from 7.7%, the first increase since financial 2022.
Sales growth reflected a combination of higher volumes and increased average item values, Dunelm said.
Pretax profit margin of 11.9% was broadly stable year-on-year as the company absorbed cost pressures, while gross margin strengthened by 60 basis points to 52.4%, reflecting continued tight control of input costs.
Looking ahead, Dunelm said it is pleased with early trading in the new financial year, although it is ‘yet to see signs of a sustained consumer recovery’ and consumer confidence has remained ‘lacklustre.’
Nonetheless, the firm said it is confident of gaining further market share as it targets 10% in the medium term and feels ‘well-placed’ to continue to deliver sustainable, profitable growth.
The final dividend per share was boosted 1.8% to 28.0 pence from 27.5p, taking the total payout to 44.5p, up 2.3% from 43.5p a year ago. In April, Dunelm declared a special dividend of 35.0p.
Shares in Dunelm were 6.7% lower at 1,158.00 pence each in London on Tuesday morning.
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