3rd Oct 2014 06:33
LONDON (Alliance News) - Homewares retailer Dunelm Group PLC Friday said strong trading in the first quarter of its financial year was helped by weaker comparatives, but said trading continues to be buoyed by an improving UK economy, new store openings and improvements in its online offering.
The company said sales in the 13 weeks to September 27 rose 17% to GBP180.6 million, up from GBP154.3 million a year earlier. Like-for-like sales grew by 8.9%, which it said was helped by a relatively weak performance in the same quarter last year, when footfall was subdued by unusually warm weather.
"Our sales performance has been strong in the first quarter, driven partly by soft comparatives from last year but also by the strength of the Dunelm offer and an increasing awareness of that offer across the UK," said Chief Executive Will Adderley in a statement.
The homeware chain, which trades under the brand name Dunelm Mill, said its gross margin has continued to improve year-on-year, increased around 40 basis points in the first quarter.
Dunelm continues to pump money into store expansion and investments both in its in-store and online offering, particularly in fulfilment. Its been investing in its product range, service proposition, such as delivery, multichannel, infrastructure and its IT systems.
Last month, Dunelm upped its full-year dividend by 25%, after recorded a 7.3% increase in its pretax profit to GBP116 million and 7.8% growth in revenue to GBP730.2 million for the year ended June 28. It said sales and profits were driven by new store openings and improvements in its online offering.
"We intend to capitalise on the significant investments we have made, and continue to make, across our business to underpin long term growth; and we intend to keep on delivering excellent value and service to our customers. Despite the inevitable short-term impact of those investments, I am confident that we can continue to deliver significant profitable growth over the years to come," said Adderley in the company's statement Friday.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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