Leading UK homewares retailer Dunelm Group said today it sees significant opportunities to continue to grow market share, despite a highly-uncertain macro-economic outlook and significant pressures on consumers.
The company - which now has 176 stores nationwide, including an outlet in Aberdeen - revealed in its third-quarter trading update that sales for the period were £399million.
This represents a 69% jump on the same period a year ago when its shops were closed to customers due to the pandemic, and only click & collect and home-delivery services were available.
Dunelm said it continues to work closely with suppliers to take actions to mitigate significant raw materials and freight cost increases.
It added: "The outlook remains dynamic, and we continue to monitor gross margins closely."
Inventories at the end of Q3 on March 26 were £224million, compared to £193million a year ago and £147million two years ago.
The firm said: "As previously advised, we have been building a higher level of inventories to mitigate against ongoing supply-chain disruption and to ensure better availability for our customers.
"As a result, the second half of the financial year includes some additional stockholding costs. We expect inventory levels to remain broadly similar through to year-end."
Dunelm's board continue to believe that pre-tax profits for the current financial year will be in line with latest market expectations. The range of analysts' estimates is reported to be between £195million and £215million, with a consensus of £207million.
The company added: "Whilst the macro-economic outlook remains highly uncertain, and there are significant pressures on UK consumers, we remain confident in our market-leading proposition and see significant opportunities to continue to grow market share.
"As set out at the interim presentation in February, c85% of our growth over the past five years has been driven through market-share gains. Given our broad product range, low average item and basket values, coupled with our focus on providing great value at all price points, we feel well placed despite the uncertainties in the current environment."
Chief executive Nick Wilkinson said it had been another good quarter for Dunelm, with sustained growth across all of its homewares categories - particularly as customers ready their homes and gardens for the summer.
He went on: "Performance has been strong across all channels, and our new facilities for e-commerce and furniture fulfilment are now fully operational - which will enhance our multi-channel proposition, whilst providing the capacity for further growth.
"Our wide product range offers choice for every budget - whether replacing everyday essential items or refreshing a room in your home.”
FTSE 100
The UK's leading share index, the FTSE 100, was down 23 points at 7,556 shortly after opening today, following yesterday's four-point gain.
Brent crude futures slipped 1% this morning to $107.64 a barrel.
Companies reporting today
Trading updates: Ashmore Group, Dunelm Group, Hays, Mediclinic International