UK-based home furnishing retailer Dunelm has reported total net sales of £390m ($474.55m) in the first quarter (Q1) of fiscal year (FY) 2024.
This is an increase of 9% compared to the same period in FY23.
During the quarter ending 30 September 2023, the retailer registered strong performance across stores and digital channels.
Digital sales grew two percentage points (ppts) to 35% against the prior year’s quarter.
The retailer’s gross margin improved by 120 basis points (bps) in Q1 FY24, aligning with its full-year expectations of growing by 100bps.
Dunelm opened one store in Q1, with plans to open three more stores before the end of the second quarter.
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In the next two years, the retailer plans to open five to ten stores annually.
Dunelm chief executive officer Nick Wilkinson said: “Our proposition, which offers an increasingly wide range of homewares products, continues to prove popular with customers, as we delivered another strong sales performance in Q1. We continue to have a laser focus on outstanding value and customers can now find even more choice with the introduction of new ranges such as live plants.
“We are reaching more and more UK consumers through our expanding store estate and our latest marketing campaign, which is our biggest to date, showcases the breadth of the Dunelm offer, reinforcing our position as ‘The Home of Homes’.
“There remains a significant opportunity for Dunelm to take further market share and we are excited about the progress we are making against our plans, through targeted and thoughtful investment, in order to seize the compelling opportunities ahead of us. We remain very confident about our prospects for continuing to drive sustainable growth.”
Headquartered in Leicester, Dunelm operates a network of 180 stores across the UK and online, employing more than 11,000 people.