Dunelm’s third quarter trading results revealed continued sales growth driven by volume, with total sales in Q3 increasing by 3% to £435m.
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. Volume driven sales performance was underpinned by growth across store and digital channels.
Digital sales increased 1% point in the quarter, reflecting ongoing improvements to the online customer proposition, including improving the speed of the website.
Despite the impact of Red Sea surcharges, Dunelm now expects full year gross margin to be ahead of expectations.
“We have delivered a resilient performance in Q3, with continued volume-based sales growth through a period of more challenging and volatile market conditions,” Dunelm’s ceo Nick Wilkinson commented. “While discretionary spend remains under pressure, our relevant, 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 across store 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.
Adds Nick: “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 while delivering further sustainable growth and market share gains.”
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