Shares in homeware and soft furnishings business Dunelm Mill have increased by 12 per today following the release of a positive trading statement.
In an interim management statement released yesterday, the company revealed it had beaten the high street gloom to post an 11 per cent sales increase in the 13 weeks to July 2. Like-for-like sales were up 1.9 per cent, while new stores contributed a 9.1 per cent increase.
News of the strong performance brought a positive reaction from investors. This afternoon shares in the company were trading at 454p, up 12.3 per cent over the day.
The company said it opened 10 new stores during the financial year, taking its total portfolio of superstores to 103. A further 13 stores are due to open in the UK and Dunelm believes there is potential for as many as 200. The business' range of price points and use of display products such as display supports and cable displays to advertise special offers has had a marked effect on sales.
Nick Wharton, chief executive, said: "In what has been a particularly challenging year, we are encouraged both by the trading performance and by the strategic development of the business.
"Our focus on constantly improving our customer offer has allowed us to gain market share while expanding gross margins; at the same time our future growth prospects have been enhanced through strengthening the pipeline of new stores and the continuing development of our multi-channel footprint.
"The combination of satisfactory trading and a disciplined approach to operating costs means that the board anticipates that profit for the year will be in line with current market expectations."
