Dunelm Says Full-Year Profit to Rise as Low Prices Boost Sales

Dunelm Group Plc, a U.K. operator of budget home-furnishing stores, says it expects full-year profit to match forecasts, helped by sales growth of 9.3 percent to in the 13 weeks through July 2.

The company said sales were 262.9 million pounds ($420 million) in the period, as like-for-like sales rose 1.9 percent; same-store sales for the fiscal year ending July 2 fell 0.6 percent. Low store prices in the quarter attracted customers even though taxes increased and commodity prices rose, the Leicester, England-based company said in a statement on Regulatory News Service.

Nick Bubb, a retail analyst at Arden Partners Plc, said the rise in same-store sales showed Dunelm was increasing market share in a tough environment.

Capital investment approached 40 million pounds as Dunelm refitted 24 of its stores, while it intends building 13 superstores, according to the statement.

“In what has been a particularly challenging year, we are encouraged both by the trading performance and by the strategic development of the business,” Chief Executive Officer Nick Wharton said in the statement.