Dunelm has reported a 1.1 per cent rise in first-quarter sales as demand recovered following a sluggish start to the financial year.
The homewares retailer saw sales reach £433 million in the 13 weeks to September 26, with trading improving as cooler weather brought shoppers back to stores.
Sales fell around three per cent during the first six weeks of the quarter as exceptionally warm weather dampened demand, before rebounding by approximately four per cent in the final seven weeks.
However, store-enabled like-for-like sales slipped 0.8 per cent over the period, while digital sales accounted for 41 per cent of total revenue, up one per cent year on year.
Dunelm reported double-digit growth in its Made to Measure category, while its Cook and Dine ranges performed strongly in the second half of the quarter, supported by product refreshes.
Gross margin also increased by 10 basis points year on year, benefiting from favourable foreign exchange movements.
It maintained its full-year adjusted pre-tax profit expectations, which remain broadly in line with the previous year.
However, it warned that first-half profits would be lower year on year, with the benefits of its cost-saving initiatives expected to be weighted towards the second half.
Dunelm has continued rolling out its three-year Winning Hearts & Homes strategy, which focuses on simplifying product ranges, improving its omnichannel offering and reducing costs.
It completed five store refurbishments, including one since the quarter ended, and expects to open two new stores during the first half of its financial year.
Dunelm also expanded trials of RFID technology across selected stores and introduced AI-enabled tools in its contact centre to improve customer service and operational efficiency.
Chief executive Clo Moriarty said: “I’m encouraged by the momentum we built as the quarter progressed, following the impact of the exceptionally warm weather.”
She added: “The early signs are encouraging and reinforce our confidence in the opportunity ahead.”
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