British homewares retailer Dunelm has delivered £399m ($523.9m) in total sales for the third quarter (Q3) fiscal 2022 (FY22), up 69% compared to the corresponding period in FY21.

Sales for the 13-week period ending 26 March 2022, were 40% higher than in the same period two years prior. Digital sales represented 35% of total sales in Q3.

Gross margin in the quarter was better than expected with an increase by 30bps compared to the same period last year.

Driven by the continued strong growth in store sales and digital sales, Dunelm’s total sales for the year-to-date were up 25% from last year and 37% on a year-on-two-year basis.

For the year to date, digital sales represented 34% of the company’s total sales.

Dunelm chief executive officer Nick Wilkinson said: “It has been another good quarter for Dunelm with sustained growth across all of our homewares categories, particularly as customers ready their homes and gardens for the summer. 

“Performance has been strong across all channels and our new facilities for e-commerce and furniture fulfilment are now fully operational, which will enhance our multi-channel proposition, whilst providing the capacity for further growth.

“Whilst the macro environment remains uncertain, with significant headwinds and increasing pressures on the consumer, our wide product range offers choice for every budget, whether replacing everyday essential items or refreshing a room in your home.

“The resilience of the Dunelm business model and the ability of our colleagues to adapt quickly to changing circumstances give us confidence in our plans and we remain well placed to continue to grow market share.”

As of 1 April, Dunelm operated a network of 176 stores including the recently opened superstore in Leeds.

The retailer plans to open one more store before the end of the financial year.

The board expects its profit before tax (PBT) for FY22 to be in line with the latest range of analysts’ estimates of £195m-£215m.