Dunelm dash for growth continues

6th Oct 2010 07:29

Fast growing homewares retailer Dunelm is finding it hard to match last year's rapid like for like sales growth rate but management was still encouraged by the company's first quarter performance.Total sales in the 13 weeks to 2 October rose 11.6% to £126.7m from £113.6m in the corresponding period of last year.New floor space contributed 9.5 percentage points of that sales growth; like for like (LFL) sales growth was 2.1%, a far cry from the 8.0% LFL growth the company achieved over the whole of the last financial year but a "very encouraging" performance in the view of the company "given the context of an exceptionally strong performance in the comparative period last year." Gross margin has continued to increase year on year although, as anticipated, the rate of growth has slowed to 100 basis points (one percentage point) for the quarter.During the first 13 weeks of the new financial year the company has opened three new superstores, bringing the size of the superstore estate up to 96.The company plans to open another five outlets in the second quarter. In addition, three more leases have already been signed and those stores are expected to commence trading in the second half of the current financial year.For the longer term, Dunelm has completed the acquisition, for £8.0m, of two new freehold locations during the quarter."We remain cautious about the UK consumer environment, but are encouraged by the strength of trading over the first quarter and we are pleased with our pipeline of new store openings," said chief executive Will Adderley.