Dunelm lifts first quarter sales

Homewares retailer Dunelm said total first quarter sales increased 13.8 per cent as cash conscious shoppers opted for its value for money range.

Like-for-like (LFL) sales grew 3% in the 13-week period from July 1st to September 29th 2012. Total sales value increased to £151.8m in the period compared to £133.4m the same time a year earlier.

Gross margin continued to increase year on year, with an estimated 40 basis points rise compared with the equivalent quarter last year, the group said.

However going forward, the rate of increase is expected to slow due to strategic price investment in key product areas, it added.

Chief Executive Nick Wharton commented: "This solid quarter of trading reflects the unrivalled choice and excellent value which form the core of our Simply Value For Money proposition, leading to a further gain in market share on a like-for-like basis."

"Despite the challenging consumer environment, this performance further reinforces our confidence in our strategy and in the opportunity for future growth both through new stores, where our pipeline remains strong, and multi-channel."

Dunelm opened four new superstores during the first quarter bringing the estate to 118 superstores across the UK.

CJ