The severe weather provides a bright outlook for Dunelm

Homeware retailer Dunelm forecast full-year profit ahead of analysts’ expectations, benefiting from the severe weather that hit the UK earlier this year.

For the year ended June 30, Dunelm expects a pre-tax profit of £96m, up from £83.6m a year earlier.

Analysts expect the company’s profit before tax to be £91.6m, according to Thomson Reuters data.

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The company, which has 124 Dunelm Mill stores across the UK selling items such as bedding, curtains, kitchenware and lighting, said revenue grew 12 per cent to £603.7m.

“Like-for-like sales growth was exceptionally strong, boosted by the unusually wet weather over much of the quarter which ensured consistently strong footfall into stores,” the company said.

Like-for-like sales rose 10.4 per cent for the fourth quarter. They were up 3.1 per cent for the whole year.

The country endured snowfall and freezing temperatures in February, which was followed by record heavy rainfall in April.

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Nick Wharton, chief executive, said: “The final quarter has seen further strong progress throughout the business, with robust like-for-like sales trends.

“In addition, we have continued to drive growth through new stores and our multi-channel offering, which now represents around 3 per cent of reven- ue.

“Our continued focus on developing our ‘Simply Value for Money’ proposition has seen further market share gains.

“Looking ahead, we anticipate that consumer spending will remain under pressure.

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“Nevertheless, with ten further store openings committed, a strengthening multi-channel offering and with our unique proposition resonating with a wide range of customers, we remain confident in the future growth prospects for the business.”

Dunelm will report its full-year results on September 13.

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