Dunelm Group plc (LON:DNLM) has said its sales jumped by 24% year-on-year in the four weeks to August 29, 2020, after a 59% increase in July.
The homewares seller said it was helped by pent-up demand following the coronavirus pandemic store closure period and by the timing of its summer sale.
READ: Dunelm spending £150,000 per week to operate within social distancing rules
“This performance reflects the strength of our proposition within a resilient homewares market, positive footfall growth to our mainly out-of-town superstores and continued strong growth in our home delivery offer,” it noted in the trading update.
However, the FTSE 250-listed retailer did not provide guidance for the rest of the year because of uncertainty around the pandemic.
House broker Peel Hunt raised the target price to 1,600p from 1,400p as the group has "significant market share growth ahead".
"While Dunelm is benefitting from strong consumer trends in home spending, in keeping with the wider market, the group is successfully building a stronger market position," analysts commented.
"We look forward to gaining a greater understanding of how Dunelm has built its active customer base and existing customer spend in September’s final results."
Shares added 5% to 1,500.4p on Tuesday in early trades.
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