Dunelm Group PLC on Thursday posted a rise in its first quarter sales due to stronger demand for its autumn and winter collections.

The Leicester, England-based home furnishings’ retailer said total sales for the first three months of the year ending July 1 increased by 9.2% to £390 million from £357 million a year prior.

‘Growth was broad based across our categories with our new autumn/winter ranges, including new collaborations with Disney and the Natural History Museum, resonating well by offering colour and personality to help customers find joy as they enhance their homes,’ the company said.

Dunelm added that it improved its gross margin by 120 basis points, consistent with its full-year guidance for gross margin to rise by around 100 basis points.

Looking ahead, the retailer said it is looking to extend and digitalise its total retail system. It expects to open three new stores before the end of the current quarter, and is on track to deliver its full year target of five to 10 new store openings. Dunelm added that it is well-placed to deliver ‘ongoing sustainable growth.’

Chief Executive Officer Nick Wilkinson says: ‘Our proposition, which offers an increasingly wide range of homewares products, continues to prove popular with customers, as we delivered another strong sales performance in [the first quarter]. We continue to have a laser focus on outstanding value, and customers can now find even more choice with the introduction of new ranges such as live plants.

‘There remains a significant opportunity for Dunelm to take further market share, and we are excited about the progress we are making against our plans, through targeted and thoughtful investment, in order to seize the compelling opportunities ahead of us. We remain very confident about our prospects for continuing to drive sustainable growth.’

Shares in Dunelm were down 0.2% at 1,035.00 pence each in London on Thursday morning.

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