Homeware retailer Dunelm has defied the challenges facing its market sector to record an increase in sales during its latest fiscal quarter.
The company, which sells home textiles, kitchenware and wall art, booked sales of £124m for the 13 weeks to the beginning of July, a 2% rise on a like-for-like basis and 11% with contributions from new space.
Sales for the full year, which has just ended, reached £538m, marking a 9% improvement on the previous 12 months.
“In what has been a particularly challenging year, we are encouraged both by the trading performance and by the strategic development of the business,” said chief executive Nick Wharton.
“Our focus on constantly improving our customer offer has allowed us to gain market share while expanding gross margins; at the same time our future growth prospects have been enhanced through strengthening the pipeline of new stores and the continuing development of our multi-channel footprint.”
Wharton told investors he anticipates that profit for the year will be in line with current market expectations.
The launch of Dunelm’s latest store in Fareham brings the total number of openings during the past year to 10, including one relocation.
The retailer now operates 103 superstores, but believes there is enough potential in the UK market to eventually have as many as 200 outlets.
Dunelm remains highly cash generative and had net cleared funds of more than £31m at the start of July. It currently has a current market capitalisation of approximately £800m.