15th Oct 2020 09:38
(Alliance News) - Dunelm Group PLC on Thursday said a "buoyant homewares market" resulted in increased quarterly sales and margins, and the company has not experienced any significant disruption from regional restrictions placed across the UK.
The Leicestershire, England-based retailer added that it is unable to provide any "meaningful guidance" for financial 2021 despite first quarter performance being ahead of internal expectations, resulting in a "robust" current trading.
Total sales for the 13-week period to September 26 were GBP359.1 million, up 37% year-on-year from GBP262.6 million. Online sales surged to 30% from 18%.
"We have delivered meaningful growth across our total retail system, with online sales growth continuing at the levels previously reported, and strong growth in stores," Dunelm said.
Gross margin for the first quarter increased by 100 basis points, mainly due to a lower proportion of discounted sales and sourcing improvements. For financial 2021 year, the company expects gross margin to be slightly positive year-on-year, barring any material Covid-19 related disruptions.
FTSE 250-listed Dunelm has decided to repay cash received under the UK government's Job Retention Scheme in financial 2020, provided there is no further material Covid-19 related impact during the winter months.
The company received GBP14.5 million under the government scheme in financial 2020. It has not availed any money under the scheme in financial 2021, which began on June 28.
Dunelm ended the quarter with a net cash position of GBP175.2 million.
Chief Executive Officer Nick Wilkinson said: "We are really pleased with our very strong performance in the first quarter, with customers responding well to the Dunelm offer across all product categories, both in-store and online.
"While we remain cautious about the continued uncertainty in the wider market, the resilience and flexibility of our business model leaves us well positioned as we enter our peak trading period and we remain confident in our ability to grow market share and help even more customers create a home they love."
Shares in the company were down 2.6% at 1,517.00 pence each in London on Thursday morning.
By Tapan Panchal; [email protected]
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