Dunlem like-for-like sales down 5.3% as hot weather impacts footfall
Dunelms like-for-like sales dropped by 5.3% in its first quarter as hot summer weather in the period impacted footfall.
The homewares retailer said that sales in the first four weeks of 13 week period to 28 September had shown a significant decline although there was a return to like-for-like growth over the remainder of the quarter. Total sales increased by 1.7% to £154.3 million in the period.
Dunelm increased its gross margin year-on-year, with an estimated 70 basis points rise compared with the equivalent quarter last year. This was a reflection of the benefit of increased direct sourcing compared with last year, as well as the cleaner inventory position at the start of the financial year following margin investments made in the second half of the previous year.
Commenting on the trading, Dunelm chief executive Nick Wharton said: “As previously indicated, the hot weather made it a difficult start to the quarter for Dunelm with trading in the early weeks significantly affected by lower footfall.
“A return to like-for-like growth over the remainder of the quarter underlines the quality and strength of the Dunelm offer and we continue to see good opportunities for growth both through new stores and multi-channel.
“The development of our customer offer continues, including a major TV advertising trial now under way which is designed to communicate better our market leading proposition."
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