Sales growth at home wares seller Dunelm's (LON:DNLM) bricks & mortar estate picked up in the first quarter of the company's new financial year.
Like-for-like (LFL) sales at its stores in the 13 weeks to 3 October were up 4.4% to £171.8mln.
In the preceding quarter LFL sales had risen 3.5% year-on-year (YOY) while in the same quarter of 2014 they had risen 6.3%.
Online sales are still growing fast, but are not maintaining the explosive growth rate seen in the recent past.
Home delivery sales in the first quarter were up 25.9% YOY to £11.5mln, compared to a 43.5% growth rate in the preceding quarter and an 83.8% YOY jump in the same period of 2014.
The group revamped its web site during the period and Will Adderley, chief executive, said the company expects to see substantial further growth through this channel once the site has bedded down.
LFL sales for the group – combining in-store sales and home delivery – rose 5.5% to £183.6mln, representing a slight decline from the 5.8% growth rate seen in the previous quarter and a bigger decrease from the 8.9% growth rate in the same period of 2014.
Including new stores, total sales rose 12.0% to £202.3mln from £180.6mln the year before.
Gross margin increased by about one-fifth of a percentage point.
"Our sales performance was strong in the first quarter, reflecting the steps we have taken to refresh our product range, improve seasonal merchandise and to create an improved shopping experience for our customers in-store,” Adderley said.
The company also unveiled the acquisition of Fogarty, the long-established market of pillows, duvets and mattress protection products.
"I am delighted that we have acquired the rights to the Fogarty brand,” Adderley said.
“This investment, as with the acquisition of Dorma a few years ago, adds an important brand to our portfolio. It further strengthens our specialist home wares retail proposition and provides a number of potential growth opportunities for the medium term," he added.