Dunelm reports 'solid' third quarter sales growth
Homewares retailer Dunelm saw its revenue climb by 10.7% to Â£216.2 million in its third quarter.
In the 13 weeks to 28 March, like-for-like sales across its stores and home delivery business grew by 4.9% after slowing from the first half growth of 6.2%. The company said this was a reflection of the stronger comparative performance in the third quarter of the previous financial year.
In-store like-for-like sales grew by 2.9% as the retailer benefited from a particularly strong Winter Sale performance and ongoing success in developing its Made to Measure service and furniture proposition.
Home Delivery sales climbed by 40% ahead of the launch of a new web platform later in the financial year.
Dunelm said it had a pipeline of a potential 11 new stores, four of which are expected to open prior to the financial year-end. This will take the number of store openings for the full year to twelve and the superstore portfolio to 148 stores at the year-end.
The retailer has also committed to a second leasehold distribution centre close to its existing facility in Stoke which will provide additional capacity from Spring 2016 onwards.
Will Adderley, Dunelm chief executive, said: "We have recorded solid sales growth over the last quarter, and we believe that we have continued to take market share on a like-for-like basis.
"We have a strong Easter Event now in progress, a powerful Summer Sale to follow, and the launch of our new web platform before the end of the financial year, all of which leave us well placed to drive further sales growth through our final quarter. However, the full year outcome against our ambitious internal targets will ultimately depend on the traditionally volatile summer months' trading.
"Looking into the next financial year and beyond, we remain very excited about the prospects for the business and about the clear growth ambitions that we set out in February."
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