Dunelm Group PLC (LSE:DNLM) has reported a 3.5% year-on-year increase in total sales for the first quarter of FY25, reaching £403 million.
The growth was driven primarily by increased volumes, with digital sales making up 37% of all sales, an improvement on the same period last year.
The soft furnishings seller meanwhile noted its improvement in gross margin, up by 20 basis points year-on-year.
It also pointed to the introduction of new AI-driven search features on its website, which it said helped contribute to online sales.
"We have delivered robust sales growth over the first quarter, offering a wide range of products for the home at outstanding value, and this continues to resonate with new and existing customers,” chief executive Nick Wilkinson said in a statement.
"We continue to make good progress against our strategic plans. Later this year, we will bring our specialist proposition to inner London for the first time, opening at Westfield London.”
Dunelm shares rose 11p, 0.9%, changing hands at 1,204p.