Homewares retailer Dunelm (DNLM) is on track to deliver a strong full-year performance having reported a 5 per cent rise in third quarter underlying sales, which was well ahead of consensus forecasts of 1.8 per cent, and a 100 basis point improvement in the gross margin.
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Four stores opened in the period, with two more due to be unveiled by the year end, bringing the total store portfolio to 136, on track for the medium-term target of 200. Dunelm continues to benefit from increased direct sourcing, which keeps prices low for customers and margins high for the company. It's also investing heavily in multi-channel, customer service and television advertising campaigns.
