Annual profits

Dunelm posts record annual profits

DUNELM saw its annual profits jump by almost a third to a new record, but signaled an “extremely difficult” wider economic backdrop.

The home goods retailer said pre-tax profits jumped 32.4% to £209m on a 52-week pro forma basis, from £157.8m the previous year.

Dunelm said sales remained “robust” in the first 10 weeks since the end of the year on July 2, although they were lower than a year earlier when trading was boosted by a delayed summer sale and the reopening of stores with the lifting of Covid-19 restrictions.

Its costs have soared, with inflationary pressures – mainly on staff salaries – adding a further £17m to its annual operating expenses, and it said it would ‘continue its unrelenting focus on making that every book counts”.

It stuck to forecasts for the new fiscal year despite the bleaker outlook for consumer spending and cost concerns.

Chief Executive Nick Wilkinson said: “We feel confident and well prepared to weather the current economic pressures – we have emerged from an unprecedented global pandemic as a bigger and better business and we believe we have the tools in place to do it again.

“That said, the operating and economic environment is extremely challenging.

“In this environment, we must make every pound count, both for ourselves through our tight operational control and cost discipline, and for our customers, through our exceptional value offering to all. price levels.”

The group saw its total sales jump 16.2%, with online sales accounting for 35% of its turnover, compared to 20% in 2018-19.

It said it had raised pay by more than 7% on average for its 11,000 workers to help tackle the cost of living crisis.

The group added more than 800 additional employees during the year.

The figures come after Dunelm recently named outgoing Whitbread chef Alison Brittain as its new chair.

Ms Brittain joined the channel’s board on September 7 as an independent non-executive director and chair-elect, before taking over from current chairman Andy Harrison before his nine-year term ends in September. next year.

The consumer price index inflation rate fell to 9.9% in August from 10.1% in July, the Office for National Statistics said.

It is understood that the slight drop was due to lower petrol prices over the past month.

PARSLEY Box has cut its workforce by nearly a third as the ready-meal delivery company grapples with falling online shopping volumes amid the cost of living crisis.

The Edinburgh-based company, which caters to consumers over 65, cut losses in the first half of this year despite falling revenue from new and existing customers.

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