Dunelm gets Easter bounce in sales

Sales growth at homewares retailer Dunelm picked up over Easter but were driven by promotions that hit profit margins, the group said today.

Dunelm, which sells curtains, bedding, blinds, rugs and lighting from mostly out-of-town stores, said sales at shops open at least a year rose 3% in the nine weeks to April 24.

That marked a pick-up on the previous seven weeks, with underlying sales for the 16 weeks to April 24 - the second half of the group's financial year - up 1.6%.

However, Dunelm said sales growth had slowed since Easter. Promotions reduced growth in profit margins to 80 basis points over the nine weeks, compared with 180 basis points for the financial year so far.

"We are satisfied with our overall performance so far this half," chief executive Will Adderley said. Sales at refitted stores were growing at about 10% above trend.