Dunelm Group PLC on Wednesday reported surpassing pre-pandemic annual sales for a second consecutive year as the home furnishings retailer benefited from an increase in active customers.

Total sales in the financial year to July 2 were up 18% at £1.58 billion from £1.34 billion the year before. This compares to £1.10 billion for financial year 2019.

‘Active customers grew by 8.5% over the year, with increases across all demographics,’ Dunelm explained.

Pretax profit in financial year 2022 increased 35% to £212.8 million from £157.8 million a year ago.

The Leicester-based firm raised its ordinary full-year dividend by 14% to 40 pence from 35p, but reduced its special payout to 37p from 65p.

The gross margin for the year slipped to 51.2% from 51.6% the year before, and Dunelm expects to achieve a margin of around 50% in its recently commenced financial year.

Sales have been ‘robust’ in the first 10 weeks of its 2023 financial year, the Leicester-based firm added, and it is on track to deliver full-year results in line with analyst expectations.

‘We feel confident and well prepared to weather the current economic pressures - we emerged from an unprecedented global pandemic as a bigger, better business and we believe we have the tools in place to do that again. That said, the operating and economic environment is extremely challenging,’ said Chief Executive Officer Nick Wilkinson.

Dunelm shares were 3.7% higher at 749.90 pence each in London on Wednesday morning.

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