Dunelm's Q1 revenue falls due to unusually warm weather

Homeware retailer Dunelm’s first quarter revenue fell due to the unseasonably warm weather.

For the four months ended 1 October, revenue fell by 1.8% to £198.7m, compared to the same period last year.

Like-for-like sales growth from stores and the home delivery service also decreased by 3.8% to £187.5m, due to the unusually warm weather during the quarter which had a dampening effect on store footfall.

However, the FTSE 250 listed company did experience growth from the online business as home delivery sales grew 17.9% to £13.6m, and maintained that the company was “continuing to outperform the homewares market as whole”.

The gross margin is expected to be broadly flat in comparison to last year as it was not affected by adverse foreign exchange markets.

Dunelm plans to open nine new stores by the end of the current financial year and four by the end of 2016.

At the beginning of October net debt was about £83m and daily average net debt across the quarter came to £76.5m.

Chief executive John Browett, said: "We are looking forward to a stronger second quarter as we continue to invest in extra seasonal space, new till systems, store refits and new store openings. We should also benefit from weaker comparatives.

"We continue to focus on our key initiatives whilst ensuring we maintain our unique offer of tremendous value for money, combined with an unrivalled range and great service."