The group reported an 8.3% increase in sales to £388.8 million in the 13 weeks to September 25 compared.
Homewares chain Dunelm has reported growth in first-quarter sales, although not as much as they enjoyed from last year’s post-lockdown boost, while the retailer also flagged ongoing challenges with supply chain issues.
The group reported an 8.3% increase in sales to £388.8 million in the 13 weeks to September 25 compared to the same period a year ago, when sales soared by 36.7% thanks to pent-up demand following the initial Covid-19 lockdown.
It marks a sharp slowdown in sales growth, given the tough year-on-year comparison, but Dunelm said sales jumped 48% on a two-year basis.
Online sales lifted 20%, making up a third of all sales, down from 46% in the previous year when stores were impacted by closures.
Dunelm cautioned over an “uncertain” outlook in the wider economy, clouded by the UK and global supply chain disruption and rising costs due to freight and driver shortages, but stuck to its recently upgraded profit guidance.
It added it was weathering the storm thanks to good stock levels and with customers able to switch products if availability of certain lines are impacted.
But Dunelm recently revealed it was raising prices on some products as a result of inflationary pressures hitting supply chains, and was offering incentives to lorry drivers to keep trucks moving.
It comes as others in the sector, such as Next, warned over price rises for homewares, which are particularly affected by rising freight costs.
Dunelm said: “The macro outlook remains uncertain, in particular regarding supply chain disruption and inflationary pressures from freight and driver shortages.
“Whilst we are not immune to the challenges being widely reported, we feel well placed relatively to manage them.
“In particular, we have good stock levels across our stores, warehouses and supplier partners, a low proportion of seasonal ranges within our product offer, and also benefit from a higher propensity for customers to substitute products within homewares categories, given our broad range.”
The group recently announced plans to hand a £132 million special dividend payout to shareholders after seeing profits soar 44.6% to £157.8 million.