New stores drive Dunelm full year sales up

4th Jul 2013 07:02

Soft furnishings retailer Dunelm suffered a drop in underlying sales in the last quarter after it came up against tough comparatives. But it is on track to make full year pre-tax profits of £108m after growing full year underlying sales by 1.7% and an increase in margins.The company, founded as a market stall business in 1979, said gross margins for full year and quarter were expected to have improved by about 40 and 80 basis points respectively thanks to a cleaner stock position after a successful winter sale.Total full year revenues were up 12.2% to £677.2m thanks to new stores. It has opened 14 new superstores in the past 12 months taking its chain to 135 outlets. In the 13 weeks to June 29th, underlying sales fell 2.8% but that was compared with a 10.4% rise in the same quarter in the previous year. Chief Executive Nick Wharton said: "With a significant opportunity for future growth from both new stores and multi-channel still in front of us the board remains confident in the overall growth prospects of the business."TB