Dunelm Group PLC (LSE:DNLM) said revenue grew 69% in its third-quarter update and expects profit before tax for the year in line with expectations despite macro-economic conditions.
There are continued “significant pressures on UK consumers,” although the homeware retailer said it is working with suppliers to limit the impact of inflation, particularly raw materials and freight costs.
As a result, it expects gross margins for the year to broadly be in line with the financial year 2021.
“Our wide product range offers choice for every budget, whether replacing everyday essential items or refreshing a room in your home,” said chief executive Nick Wilkinson.
Revenues were boosted by the re-opening of stores, climbing to £399mln.
However, the London-listed company reported a debt position of £14mln, down from net cash of £40mln year-on-year following its £75mln special dividend payment in February.
Operationally, it launched a product collaboration with the Natural History Museum, as well as its fulfillment centre in Daventry working towards full capacity.
Dunelm also expects to open another store before the end of the year to add to the shop in Leeds which opened its doors this month.
"Performance has been strong across all channels and our new facilities for e-commerce and furniture fulfilment are now fully operational, which will enhance our multi-channel proposition, whilst providing the capacity for further growth,” Wilkinson added.
Shares were up 1.7% to 1,078p in afternoon trading.