Dunelm lines up special divi as profit jumps 35%

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Dunelm lined up a special dividend as the homewares retailer saw annual profit rise by more than a third, led by both online and instore growth.

For the year ended 29 June, pre-tax profit surged 35.2% to £125.9m as revenue climbed 4.8% to £1.1bn.

Total like-for-like sales increased by 10.7% with stores delivering 7.7% growth and dunelm.com 35.1%.

Gross margin improved by 160 basis points, reflecting improved sourcing, FX gains, the elimination of Worldstores product lines with lower margins, and better end of season stock management, the company said.

The company declared a final dividend of 20.5p, taking the full-year ordinary dividend to 28.0p, up 5.7% on last year.

A special dividend of 32.0p was declared, taking the total shareholder dividend for the year to 60.0p.

'Whilst recent trading performance has continued to be strong, we remain cautious about the full year outlook due to ongoing Brexit uncertainty and specifically the impact it may have on consumer spending as we enter our peak period,' the company said.