Dunelm has reported sales of £435m in Q3, up 3% year-on-year.
In the report for the 13 weeks to 30 March 2024, Dunelm showed that year-to-date total sales were £1,307m, an increase of 4% year-on-year.
The retailer said that trading conditions have continued to be volatile with March in particular seeing softer levels of demand, but that volume driven sales performance has been underpinned by growth across store and digital channels.
Digital sales increased 1ppt in the quarter, reflecting ongoing improvements to the online customer proposition, including improving the speed of the website.
Gross margin increased by 60bps in the quarter. As expected the rate of YO improvement is slowing as the lower freight costs are being lapped. Despite the impact of Red Sea surcharges, Dunelm now expects full year gross margin to be ahead of expectations and to increase by around 110bps year-on-year.
Nick Wilkinson, ceo, commented: “We have delivered a resilient performance in Q3, with continued volume-based sales growth through a period of more challenging and volatile market conditions. Whilst discretionary spend remains under pressure, our relevant and attractive product offer continues to resonate with customers as they shop across our broad ranges to find quality and value for all areas of the home.
“This performance reflects our deep-rooted understanding of our customers and the effectiveness of a total retail system which continues to drive growth acrossstore and digital channels, bringing further three market share gains. At the same time, our operational grip continues to mitigate ongoing cost headwinds and has supported a strong gross margin performance.
“Looking ahead, we are excited about strengthening our customer offer, and the breadth of growth opportunities this presents. Consumer behaviour continues to be difficult to predict, however we remain confident in our ability to navigate current conditions whilst delivering further sustainable growth and market share gains.”
