TIDMDNLM
RNS Number : 6415K
Dunelm Group plc
12 April 2018
12 April 2018
Dunelm Group plc
Third Quarter Trading Update
Dunelm Group plc ("Dunelm" or "the Group"), the UK's leading
homewares retailer, reports the following trading update for the
third quarter of its current financial year, comprising the 13-week
period ended 31 March 2018.
Revenue
Total revenue for the third quarter rose by 5.1% to GBP268.2m.
Total like-for-like (LFL) revenue grew by 4.6%, continuing the
growth trend seen in the first half. Organic online growth through
Dunelm.com has also remained strong, at 35.7% in the quarter. The
year-on-year reduction in non-LFL online sales partially reflects
the disposal of the Achica business.
13 weeks to 31 March 39 weeks to 31 March
2018 2018
------------------- ---------------------------------- ----------------------------------
Revenue YoY Growth YoY Growth Revenue YoY Growth YoY Growth
(GBPm) (GBPm) (%) (GBPm) (GBPm) (%)
------------------- -------- ----------- ----------- -------- ----------- -----------
LFL Stores(1) 202.7 2.5 1.2% 626.0 16.8 2.8%
------------------- -------- ----------- ----------- -------- ----------- -----------
LFL Online(2) 29.4 7.7 35.7% 75.5 20.1 36.4%
------------------- -------- ----------- ----------- -------- ----------- -----------
Total LFL 232.2 10.2 4.6% 701.5 37.0 5.6%
------------------- -------- ----------- ----------- -------- ----------- -----------
Non-LFL Stores(3) 21.0 10.6 56.1 35.6
------------------- -------- ----------- ----------- -------- ----------- -----------
Non-LFL Online(4) 15.0 (7.8) 55.9 25.3
------------------- -------- ----------- ----------- -------- ----------- -----------
Total Dunelm
Group 268.2 13.0 5.1% 813.6 97.9 13.7%
------------------- -------- ----------- ----------- -------- ----------- -----------
1. LFL Stores - stores trading for at least one full financial
year prior to 2 July 2017 without any significant change of
space
2. LFL Online - Dunelm.com
3. Non-LFL Stores - new stores opened within the current financial year or prior financial year
4. Non-LFL Online - Worldstores.co.uk, Kiddicare.com and
Achica.com. Note, the Group completed the disposal of the Achica
business on 15 February 2018
Gross Margin
In Q3 our gross margin was approximately 15bps lower than the
comparable period last year. Core Dunelm margins were down 95bps,
reflecting the reversal of a one-off phasing benefit from retail
price increases last year and a continued higher proportion of end
of season sales. This was largely offset by improved Worldstores
product margins year on year, which will continue to benefit the
fourth quarter.
In the final quarter, we expect our gross margin to improve
significantly year on year, largely reflecting the adverse impact
of end of season sales in Q4 last year that we do not expect to
repeat this year. We retain our guidance that our H2 margins will
be broadly in line with our H1 margins.
Store Portfolio
Our superstore footprint remains at 169 stores. No further
stores were opened in the quarter, or are currently expected to
open in the remainder of this financial year.
Financial Position
As at 31 March 2018, net debt was approximately GBP123.8m and
daily average net debt across the quarter was GBP109.4m.
During the quarter, we agreed with our existing syndicate
partner banks to amend and extend our Revolving Credit Facility for
a further three years to March 2023, with two further one-year
extension options. We have increased the maximum facility size by
GBP15m to GBP165m. The terms, fees and covenants remain the same as
the prior agreement. We have retained an accordion facility of
GBP75m, although this remains uncommitted at this stage.
Commenting on Dunelm's performance, Nick Wilkinson, Chief
Executive, said:
"We've seen a good sales performance over the quarter, with
like-for-like sales of 1.2% in stores and 35.7% online, despite a
challenging consumer backdrop. Our continuing market share gains in
the Homewares category reflect the underlying strength of our brand
and operating model, and enhance our position as market leader. As
a result, our expectations for the full year remain unchanged.
"Having joined in February I am increasingly excited about the
opportunities available to Dunelm to develop and grow a truly
multichannel proposition. I would like to thank my new colleagues
for the work they have done to deliver significant improvements to
customer satisfaction across all of our channels, as well as
driving good sales performance."
Ends
For further information please contact:
Dunelm Group plc 0116 2644439
Nick Wilkinson, Chief Executive
Keith Down, Chief Financial
Officer
MHP Communications 020 3128 8789
Tim Rowntree / Simon Hockridge dunelm@mhpc.com
Next scheduled events:
Dunelm's Q4 trading update will be on 12 July 2018. The full
year results announcement will be on 12 September 2018.
Notes
1. Quarterly sales and margin analysis (prior year restated to include Worldstores):
52 weeks to 30 June 2018
------------------ -------------------------------------------------------------
Q1 Q2 H1 Q3 Q4 H2 FY
------------------ ---------- ---------- ---------- ---------- --- --- ---
Total sales GBP247.9m GBP297.5m GBP545.4m GBP268.2m
------------------ ---------- ---------- ---------- ---------- --- --- ---
LFL Stores
growth 6.5% 1.1% 3.5% 1.2%
------------------ ---------- ---------- ---------- ---------- --- --- ---
LFL Online
growth 46.2% 30.5% 36.8% 35.7%
------------------ ---------- ---------- ---------- ---------- --- --- ---
Total LFL growth 9.3% 3.4% 6.0% 4.6%
------------------ ---------- ---------- ---------- ---------- --- --- ---
Total sales
growth 24.8% 13.6% 18.4% 5.1%
------------------ ---------- ---------- ---------- ---------- --- --- ---
Gross margin -220bps -155bps -180bps -15bps
growth*
------------------ ---------- ---------- ---------- ---------- --- --- ---
52 weeks to 1 July 2017
------------------ ----------------------------------------------------------------------------------
Q1 Q2 H1 Q3 Q4 H2 FY
------------------ ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total sales GBP198.7m GBP261.9m GBP460.5m GBP255.1m GBP240.0m GBP495.1m GBP955.6m
------------------ ---------- ---------- ---------- ---------- ---------- ---------- ----------
LFL Stores
growth -5.1% -1.4% -3.1% -4.3% 1.3% -1.8% -2.4%
------------------ ---------- ---------- ---------- ---------- ---------- ---------- ----------
LFL Online
growth 17.9% 21.7% 20.1% 21.0% 32.1% 26.2% 23.5%
------------------ ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total LFL growth -3.8% 0.2% -1.6% -2.2% 3.8% 0.6% -0.5%
------------------ ---------- ---------- ---------- ---------- ---------- ---------- ----------
Total sales
growth -1.8% 6.6% 2.8% 11.4% 17.7% 14.4% 8.5%
------------------ ---------- ---------- ---------- ---------- ---------- ---------- ----------
Gross margin 0bps -60ps -35bps -75bps -195bps -130bps -90bps
growth*
------------------ ---------- ---------- ---------- ---------- ---------- ---------- ----------
Gross margin 0bps +10ps +5bps +75bps -75bps 0bps 0bps
growth**
------------------ ---------- ---------- ---------- ---------- ---------- ---------- ----------
*estimated group margin growth
**estimated underlying/pre-acquisition margin growth
Notes to Editors
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, following
the opening of the first Dunelm superstore in 1991, into broader
homewares categories. Dunelm is now a multi-channel retailer, with
Dunelm.com being launched in 2005 and the acquisition of the
Worldstores Group accelerating this yet further. Today, around 20%
of sales are generated online.
Dunelm is market leader in the GBP12bn UK homewares market and
active in the GBP11bn UK furniture market. It currently operates
172 stores, of which 169 are out-of-town superstores and 3 are
located on high streets, and online stores, the largest of which
can be found at www.dunelm.com, www.worldstores.co.uk and
www.kiddicare.com. Dunelm employs approximately 10,000 colleagues
and sells around 30,000 product lines in store, increasing to
around 300,000 online.
Dunelm, "The Home of Homes", offers a customer proposition of
style, value, quality and ease of shopping. From its textiles
heritage, in areas such as bedding, curtains, cushions, quilts and
pillows, Dunelm has rapidly broadened its product offering to a
complete homewares offer including the likes of kitchenware,
dining, lighting, seasonal, wall art 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.
The product range includes many, exclusive, own brand designs
and premium brands such as Dorma, Fogarty and Kiddicare. This is
augmented by a range of other well-known brands and license
agreements.
Dunelm has been listed on the London Stock Exchange since
October 2006 (DNLM.L) and has a current market capitalisation of
approximately GBP1.1bn.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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