Homewares retailer Dunelm reported that it has continued to gain share in a shrinking market as its sales performance improved.
In the 18 weeks to November 1, total sales climbed 4.3 per cent – a 3.9 per cent decline on a like-for-like basis. This represents an improvement since Dunelm’s last trading update when it reported a like-for-like sales decline of 5.7 per cent after 10 weeks.
Dunelm said the performance signals the strength of its “simply value for money” proposition and softening comparables, which will continue until the end of the fiscal year.
Dunelm revealed, ahead of its AGM today, that it wants to buy back shares in the company. It said: “We do not currently expect to purchase shares for cancellation, nor do we expect to purchase a material number of shares overall.”
Dunelm experienced a “small reduction” in average transaction values against last year. The year-on-year decline in footfall has been less marked in September and October.
Gross margin strengthened by 100 basis points, net debt was£6.2 million and its committed bank facilities amounted to£50 million.
Dunelm wants at least 150 stores in the UK and has two stores under contract that will open in the second half. Four more will open after the end of the financial year.
The homewares retailer will today open a superstore at Newtownabbey in Northern Ireland and a Plymouth store in December, taking its total to 79 at the end of the half-year.
Chief executive Will Adderley said: “I am very pleased with our performance given the trading environment and I think we have great opportunities for further expansion. In particular, I am very confident that the medium-term pipeline of new store openings will remain strong.”
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