Dunelm Sales Slowdown Hits Profit Targets

Homeware retailer Dunelm has signaled a slowdown in sales growth during March due to prevailing economic uncertainties. This has led the company to forecast that its profits will likely fall at the lower end of its previously stated targets.

The company reported that sales increased by 2.1% year-on-year for the three months ending March 28, reaching £472 million. This brings the year-to-date sales to £1.4 billion, a 3.1% rise. The period started well with a successful winter sale and positive reception to new spring collections, but a general softening in trade occurred throughout March.

Despite these challenges, Dunelm's new chief executive, Clo Moriarty, emphasized a focus on controllable areas like strengthening the product offering and maintaining operational efficiency. The company is also advancing its long-term growth strategies, which include an expanded store opening pipeline and positive early results from its recently launched app.

Instability in the Middle East is also noted as a potential factor, with a small, direct cost impact expected within the current financial year. Dunelm's cost management plans for the second half of the financial year remain on track.