UK retailer Dunelm's quarterly sales surge as stores reopen

Dunelm said on Thursday its total sales jumped in the third quarter, as the British homeware retailer benefited from the reopening of stores after coronavirus curbs were eased. The company, which sells furnishings ranging from cushions and bedding to kitchen equipment, also reported a better-than-expected rise of 30 basis points in gross profit margins, thanks to a smaller proportion of sales from discounted lines.

Dunelm said on Thursday its total sales jumped in the third quarter, as the British homeware retailer benefited from the reopening of stores after coronavirus curbs were eased.

The company, which sells furnishings ranging from cushions and bedding to kitchen equipment, also reported a better-than-expected rise of 30 basis points in gross profit margins, thanks to a smaller proportion of sales from discounted lines. "Whilst the macro environment remains uncertain, with significant headwinds and increasing pressures on the consumer, our wide product range offers a choice for every budget," Chief Executive Officer Nick Wilkinson said in a statement.

The group, one of Britain's largest homeware retailers with 176 stores and an online presence, said it continued to temper inflationary cost pressures in the quarter. In February, Dunelm said it was hiking retail prices to battle rising costs. Margins for the full year are expected to be in line with the previous year, it said.

The company reported a 69% increase in sales to 399 million pounds ($524.17 million) for the 13 weeks ended March 26. Analysts at Peel Hunt said Dunelm's success in the quarter suggests consumers are not retreating yet, but there are clearly tougher times ahead.

Shares rose 3% in early trade. ($1 = 0.7612 pounds)

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