Dunelm Group PLC (LSE:DNLM) reported a decline in first-quarter sales but kept its full-year guidance unchanged despite the “challenging macroeconomic environment”.
Sales in the three months to 1 October 2022 fell 8% to £357mln, in line with expectations, the homeware retailer said, noting the strong comparatives in the first quarter of last year, which benefitted from pent-up demand and a rescheduled summer sale.
Sales were 36% higher than the same period of the last pre-pandemic trading year, it said.
Dunelm said its focus is on mitigating external headwinds and navigating current inflationary challenges.
"As we enter what will clearly be a challenging winter for consumers, our absolute focus remains on making every pound count for everyone, through a tight grip on operations,” said chief executive Nick Wilkinson.
Exchange rate movements have been volatile in recent weeks, but the company remains well hedged for the rest of the year, it said.
As a result, it is “confident” in the resilience of its business and guidance remains unchanged, which includes gross margins of roughly 50%.
Digital sales made up 33% of total sales for the quarter, in line with the same period last year.
Gross margins fell 130 basis points, which Dunelm said reflected more normal patterns of customer behaviour.