Dunelm's revenue for its third quarter (ending 2nd April) grew by 5.9% to £229m, and total like-for-like (LFL) growth (combining LFL stores and home delivery) increased by 1.1%.
Sales performance in the quarter reflected strong footfall in LFL stores driven by the performance of the winter sale. Improved conversion and higher transaction values year on year also contributed to growth.
The quarter saw one new superstore opened and a number of medium-sized refits completed, plus continuing good growth in online business, including a 27.6% increase in home delivery sales.
The total number of superstores trading at the period end was 152. Dunelm expects to open two more new stores in the remainder of this financial year, and close two existing stores (relocations). Dunelm is currently committed to a further five new openings which are likely to take place in the next financial year.
These year-on-year figures exclude six days of Dunelm's winter sale year on year, which reduced LFL growth by approximately 4.9% (c£10m) in the third quarter – although this was partially offset by earlier Easter timing which contributed approximately 1% towards the LFL performance. Adjusting for these calendar impacts, underlying LFL performance was approximately +5% for the 13 weeks to 2nd April.
John Browett, chief executive, says: "We are pleased with the strong underlying sales growth during the last quarter following the unhelpful, mild conditions experienced in Q2. Overall we continue to increase our homewares market share. We have enjoyed a good Easter, are looking forward to a successful final quarter and are confident of achieving our expectations for the full year.
"We continue to work hard on delivering our key projects across the business and remain excited about substantially improving the business for our customers, both in store and online, over the medium term, and developing Dunelm into a truly national homewares brand."
Connor Campbell, a senior market analyst at www.spreadex.com, comments: "With a 5.9% jump in third quarter revenue joined by a 1.1% rise in LFL sales it was a fantastic morning for home furnishing firm Dunelm, which rose nearly 5.5% as the day got underway. That caused the company to lift away from its recent slump, crossing the £9.50 mark for the first time since the middle of March."
