LONDON (ShareCast) - (Sharecast News) - Homeware retailer Dunelm hailed a strong first-quarter performance on Thursday, with total sales up 6.2%.
Sales in the 13-week period to 27 September rose to £428m. Dunelm said this was driven by both higher volumes and increased average item values from product and category mix, "as customers continued to respond well to its value proposition at all price points".

The digital segment accounted for 40% of total sales, up 3 percentage points on the same period a year earlier.

The retailer highlighted broad-based growth across categories, which it said reflected the continued relevance of its wide-ranging offer.

In particular, it pointed to strong demand for warming textiles such as rugs and throws as customers prepared their homes for the colder, darker months.

"We are pleased with our performance in the first quarter, in an ongoing uncertain consumer environment," Dunelm said. "We delivered broad-based sales growth across our categories and channels, and a strong gross margin.

"We continue to make good progress against our strategic priorities and invest for future growth. The timing of investments, alongside the inflationary impacts we currently face, is such that we currently expect profits to be more heavily weighted towards the second half than last year; FY26 profit before tax remains in line with the board's expectations.

"We remain confident in our ability to deliver further sustainable, profitable growth as we move towards our next milestone of 10% market share in the medium term."

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