Sept 11 (Askume) – British homeware retailer Dunelm (DNLM.L) said it has made a strong start to the financial year and expects to achieve 10% market share in the medium term by expanding its product range and growing revenue. Shares of its brands are expected to grow.
“We are committed to growing the business by investing in our products and improving them to make them better available to more customers through more stores,” Chief Executive Nick Wilkinson told Askume in an interview.
Dunelm, which sells everything from beds, sofas and chairs to garden furniture and kitchen essentials such as cutlery and cutlery, said it expects sales growth in 2025 to be driven by sales and market share.
The company’s shares were down 3% at 1,194 pence in early trade but had trimmed some losses to less than 1% by 0830 GMT.
Wilkinson said the company will provide a forecast for this year once market conditions become clearer and consumer spending patterns become more predictable.
“With no implied upgrades in FY25, we believe shares are likely to be flat or slightly lower today, although the special dividend could provide support,” JPMorgan analysts said in a note.
Dunelm declared a special dividend of 35p per share and increased its full-year dividend by 3.6%.
The retailer is experiencing a challenging consumer environment and the timing of the industry’s recovery remains uncertain as budget-conscious customers remain cautious when making important purchases.
Despite this, Wilkinson insists Brits are still looking for affordable ways to decorate their homes and prefer items such as doormats, throws, home decor and scented items rather than large pieces of furniture.
For the year ended June 29, pre-tax profit rose 6.6% to £205.4 million, while analysts on average had expected a profit of £201 million.
