2nd Oct 2013 07:34
LONDON (Alliance News) - Homewares retailer Dunelm Group PLC Wednesday reported higher sales for its first quarter due to new store openings, but growth slowed sharply from a year earlier and sales from stores open more than a year declined.
The company blamed the hot, sunny summer weather for markedly cutting the number of customers entering its shops in the first four weeks of the quarter, although there was a recovery in the remainder of the period and like-for-like sales returned to growth, it said.
For the 13 weeks to September 28, the retailer reported total sales of GBP154.3 million, up 1.7% from GBP151.8 million a year ago when it had reported total sales growth of 13.8%. However, like-for-like sales were down 5.3% compared with 3% growth a year ago.
It now has a total of 126 stores across the year. It has 12 stores under contract for opening, having committed to another two new stores in its fiscal first quarter. Two of the 12 are relocations. It said six new stores are expected to start trading before the key Christmas period.
Dunelm said gross margin had continued to increase as it predicted, and was 70 basis points higher in the first quarter than a year earlier.
"This reflects the benefit of increased direct sourcing compared with last year, as well as the cleaner inventory position at the start of the financial year following margin investments made in the second half of the previous year," it said in a statement.
Dunelm shares were down 4.5% at 884.5 pence early Wednesday, the biggest decline on the FTSE 250.
By Steve McGrath; [email protected]; @SteveMcGrath1
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