Dunelm Group plc First Quarter Trading Update (8078L)
06 October 2016 - 5:00PM
UK Regulatory
TIDMDNLM
RNS Number : 8078L
Dunelm Group plc
06 October 2016
6(th) October 2016
First Quarter Trading Update
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 1(st) October 2016.
Revenue
Total revenue for the first quarter fell by 1.8% to GBP198.7m.
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 1(nd) 13 weeks to 3(rd)
October 2016 October 2015
----------------- ---------------------------------- ----------------------------------
Sales YoY Growth YoY Growth Sales YoY Growth YoY Growth
(GBPm) (GBPm) (%) (GBPm) (GBPm) (%)
----------------- -------- ----------- ----------- -------- ----------- -----------
-5.1
LFL stores 173.9 -9.4 % 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 1(st) October 2016, net debt was approximately GBP83m.
Daily average net debt across the period amounted to GBP76.5m.
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."
Ends
For further information please contact:
Dunelm Group plc 0116 2644439
John Browett, Chief Executive
Keith Down, Chief Financial
Officer
MHP Communications 020 3128 8100
John Olsen/Simon Hockridge/Gina dunelm@mhpc.com
Bell
Forthcoming News flow:
Dunelm's next scheduled trading update will be on 12th January
2017 followed by the half year preliminary results announcement on
8th February 2017.
Notes
1. Like-for-like (LFL) sales represents revenues from stores
trading for at least one full financial year prior to 2(nd) July
2016 and excludes stores with significant change of space in the
current or previous financial year.
2. Quarterly sales and margin analysis:
13 weeks to 1st October 2016
-------------- -----------------------------------------
Q1 Q2 H1 Q3 Q4 H2 FY
-------------- ----------- --- --- --- --- --- ---
Total sales GBP198.7m
-------------- ----------- --- --- --- --- --- ---
Total sales
growth -1.8%
-------------- ----------- --- --- --- --- --- ---
LFL sales
growth -3.8%
-------------- ----------- --- --- --- --- --- ---
Gross margin 0bps
growth*
-------------- ----------- --- --- --- --- --- ---
*estimated
13 weeks to 3(rd) October 2015
----------------- ----------------------------------------------------------------------------------
Q1 Q2 H1 Q3 Q4 H2 FY
----------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total sales GBP202.3m GBP245.7m GBP448.1m GBP229.0m GBP203.8m GBP432.8m GBP880.9m
----------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total sales
growth 12.0% 8.8% 10.3% 5.9% 1.8% 3.9% 7.1%
----------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
LFL sales
growth 5.5% 3.9% 4.6% 1.1% -0.6% 0.3% 2.5%
----------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Gross margin +20bps +30bps +30bps +90bps +80bps +90bps +60bps
growth/decline
----------------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Notes to Editors
Dunelm is market leader in the GBP11bn UK Homewares market. The
Group currently operates 157 stores, of which 152 are out-of-town
superstores and 5 are located on high streets, and an on-line
store, to be found at www.dunelm.com.
Dunelm's "Simply Value for Money" customer proposition offers
industry-leading choice of quality products at keen prices, with
high levels of availability and supported by friendly service. Core
ranges include many exclusive designs and premium brands such as
Dorma and Fogarty, and are supported by a frequently changing
series of special buys. The superstore format provides an average
of 30,000 sq. ft. of selling space with over 20,000 products across
a broad spectrum of categories, extending from the Group's home
textiles heritage (bedding, curtains, cushions, quilts and pillows)
to a complete Homewares offer including kitchenware and dining,
lighting, wall art, furniture and rugs. Dunelm is one of the few
national retailers to offer an authoritative selection of curtain
fabrics on the roll, and owns a specialist UK facility dedicated to
producing made-to-measure curtains.
Dunelm was founded in 1979 as a market stall business, selling
ready-made curtains. The first shop was opened in Leicester in 1984
and over the following years the business developed into a
successful chain of high street shops before expanding into broader
homewares categories following the opening of the first Dunelm
superstore in 1991.
Dunelm has been listed on the London Stock Exchange since
October 2006 (DNLM.L) and has a current market capitalisation of
approximately GBP1.73bn.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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