Dunelm has defied the soaring cost of living with a rise in sales that beat City expectations.
The strong performance has been supported by strengthening market share in its core homewares market, aided by difficulties at John Lewis.
In a trading update yesterday, the homeware firm, which has a major outlet at the Beach Boulevard Retail Par in Aberdeen, said sales for the 13 weeks to April 1 rose by 6% to £423million.
That brought its sales in the year so far to £1.3billion, according to The Times.
It attributed its success to a six-day winter sale that “resonated particularly well” with customers and a “strong start” to its spring ranges. Dunelm’s digital sales now make up 36% of its total, but it reported strong growth both in store and online.
The retailer warned that its costs and pricing strategy remained “dynamic” as the sector continued to grapple with inflationary pressures.
However, it has pledged to maintain a “tight grip” on prices to keep shoppers onside during the cost of living crisis.
Analysts at Panmure Gordon told The Times that “Dunelm’s strong performance has been supported by strengthening market share in its core homewares market, aided by difficulties at John Lewis. Ageing UK housing stock lends itself to higher participation in home refresh projects, with Dunelm well positioned with extensive category coverage at various price entry points.”
The shares closed down 1p, or 0.1%, at £11.36 yesterday.
FTSE100
The UK's top share index, the FTSE 100, was level at 7,902 shortly after opening this morning, following yesterday's marginal three-point rise.
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