Dunelm hurt by unusually hot weather

2nd Oct 2013 07:13

Soft furnishings retailer Dunelm said soaring temperatures eroded sales at the start of the quarter, however it returned to growth over the remainder of the period and it remains confident for future trading.In an update for the 13 weeks to September 28th 2013 like-for-like (LFL) sales fell 5.3% compared to 3.0% growth the previous year after the warmer than usual weather significantly reduced footfall. Dunelm, which has 126 superstores across the UK, said total sales grew 1.7% during the period compared to 13.8% the same time the prior year. Sales value increased to £154.3m from £151.8m."Trading was volatile during the quarter with a marked reduction in footfall during the unusually warm weather reflecting Dunelm's status as a destination visit for discretionary homewares shopping," it said in its update.The of town homewares firm said gross margin increased year-on-year, with an estimated 70 basis points rise compared with the equivalent quarter last year, after increased direct sourcing, as well as the cleaner inventory position at the start of the financial year.As recently announced, a special dividend of 25.0p per share will be paid on October 11th 2013. Nick Wharton the group's Chief Executive, said: "The hot weather made it a difficult start to the quarter for Dunelm with trading in the early weeks significantly affected by lower footfall. A return to like-for-like growth over the remainder of the quarter underlines the quality and strength of the Dunelm offer.""The development of our customer offer continues, including a major TV advertising trial now under way which is designed to communicate better our market leading proposition." CJ