Dunelm Group (LSE: DNLM), the leading home furnishings retailer, reported a significant surge in first-quarter sales, propelled by heightened demand for its autumn and winter collections.
Dunelm disclosed on Thursday that its total sales for the first quarter ending July 1 soared by 9.2%, reaching £390 million, compared to the £357 million recorded in the corresponding period last year. The company attributed this remarkable growth to the popularity of its fresh autumn/winter assortments, featuring innovative collaborations with esteemed partners such as Disney and the Natural History Museum.
The retailer also noted an impressive enhancement in its gross margin, marking an increase of 120 basis points. This achievement aligns seamlessly with its annual guidance, indicating a projected rise in gross margin by approximately 100 basis points.
CEO Nick Wilkinson expressed enthusiasm about the positive performance, stating, “Our commitment to offering a diverse array of homewares products continues to attract customers. The addition of new ranges, such as live plants, has provided our customers with even more choices, amplifying our commitment to outstanding value.”
Dunelm remains focused on expanding its digital retail ecosystem. The company revealed plans to inaugurate three new stores by the end of the ongoing quarter, striving to meet its annual goal of opening five to ten new stores. The retailer is poised to sustain “ongoing sustainable growth,” affirmed Dunelm executives.
Wilkinson remained optimistic, asserting, “There exists a substantial opportunity for Dunelm to further solidify its market presence. Through strategic investments and careful planning, we are confident in seizing the promising prospects that lie ahead.”
Despite this positive news, Dunelm’s shares experienced a marginal dip of 0.2%, settling at 1,035.00 pence each on the London Stock Exchange on Thursday morning.
