7th Apr 2016 06:35
LONDON (Alliance News) - Dunelm Group PLC on Thursday reported growth in revenue in the third quarter of its financial year, driven by like-for-like growth and a rise in online home delivery sales.
The homewares retailer said total revenue in the 13 weeks ended April 2 grew by 5.9% to GBP229.0 million on the same period the year before.
Total like-for-like sales increased by 1.1%, but Dunelm said growth was reduced by around 4.9%, or GBP10 million, due to it having six days fewer of winter sales as result of the prior year including a 53rd week. This was partially offset, however, by the timing of Easter this year which contributed 1.0% towards like-for-like growth.
Dunelm said it saw strong footfall in like-for-like stores in the quarter, with improved conversion and higher transaction values. The online business also demonstrated good growth, with a 28% rise in home delivery sales.
Gross margin was around 90 basis points higher than the comparative year-earlier period due to improved stock management and reduced cost of end-of-season product clearance. Dunelm expects gross margin for the full year to be around 50 basis points ahead of the prior year.
Dunelm opened one new superstore in the quarter and completed a number of medium-sized refits as it works to expand its portfolio. It expects to open two new stores in the remainder of the year, while closing two existing stores, leaving the year-end superstore count at 152. It plans to open a further five new stores in the next financial year.
"We have enjoyed a good Easter, are looking forward to a successful final quarter and are confident of achieving our expectations for the full year," Chief Executive John Browett said in a statement.
"We continue to work hard on delivering our key projects across the business and remain excited about substantially improving the business for our customers, both in store and online, over the medium term, and developing Dunelm into a truly national homewares brand," he added.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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