Homeware retailer Dunelm has seen revenues surge up towards the £300m mark during its second quarter, helped largely by online sales.
The Leicester-headquartered company has seen revenues increase 13.6% to £297.5m in the 13 weeks to 30 December 2017.
This rise brings half-year revenue to £545.4m, an increase of 18.4%.
During the second quarter, the company also saw the opening of five new stores, bringing its total to 169.
The firm’s chairman Andy Harrison said: "After a good first quarter, it is pleasing to see our sales momentum maintained with total sales growth, and like-for-like sales growth, of 13.6% and 3.4% respectively in the second quarter.
"This performance is driving our continued market share gains. We are now up to 169 superstores having successfully opened five in the quarter.
"Continuing rapid like-for-like online growth, of 36.8% in the first half, coupled with passing the first anniversary of the Worldstores acquisition, has helped our online sales grow to 16% of total sales in the first half (18.5% including Reserve and Collect).
“We are well on the way to becoming a genuine multi-channel retailer.
"Margins in our core Dunelm business have been maintained in the first half, although there has been a sales mix impact on margins from the Worldstores acquisition and the higher participation of seasonal and end of season products.
"Overall, we remain on track, with good sales growth and market share gains, offset by margin mix.
"We are well positioned to deliver good full-year profit growth, after a small reduction in the first half, largely due to the consolidation of Worldstores losses."
However, gross margins, due to increased promotional activity and a quicker turnaround of product lines, have dropped 1.8%.
George Salmon, Equity Analyst at Hargreaves Lansdown: “Dunelm’s top-line growth of 18% is eye-catching.
“However, this has been boosted by the continued roll-out of new stores and extra discounting.
“Having more items on sale has got the punters flocking in, but it shouldn’t be forgotten that by dropping prices the group is taking a hit on profit margins.”
“While we’ll be keeping an eye on margins from here on, it’s hard not to be impressed by the progress made in the last six months or so.
“The acquisition of Worldstores gives the group greater online exposure, an area it’s clearly looking to leverage.
“Nick Wilkinson, the former head of Evans Cycles, will be taking over as CEO with momentum on his side.”
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