Following Superdry's sales success through poor UK summer weather conditions, Reuters reports that Dunelm Group, which normally sees good winter sales of its products such as bedding, curtains, kitchenware and lighting at its Dunelm Mills stores, said sales in its last quarter picked up substantially.
"The nature of the product that we sell is actually more of a winter type product than spring-summer. We actually have our strongest quarters in winter," chief executive Nick Wharton.
Dunelm's like-for-like sales for the year increased 3.1% but grew 10.4% in the final quarter.
The company's strong results come as most retailers struggle with the wettest summer in Britain in years that has forced people indoors and dampened consumer sentiment further.
"Without doubt Dunelm is outperforming the homewares market and it is gaining traction with customers keen to make their hard earned cash go that bit further in these straightened times," Oriel Securities analyst Eithne O'leary said in a note.
Dunelm, a family-run business, on Thursday confirmed that it was looking at increasing the total number of stores in the UK to 200 from 120.
"Store expansion remains a key driver of future growth. With many areas of the UK not covered, Dunelm has significant headroom for expansion and scope to double the portfolio to over 200," analysts at Singer Capital Markets said in a note.
"This expansion potential is a key differentiator between Dunelm and many of its retail peers and is the core driver behind the investment case."
While the company does not have a clear timeline for its targeted store footprint, it expects to open 12 stores on an average every year.
Dunelm also proposed a final dividend of 10p per share as against 8p last year. It said it would also return excess capital worth 32.5p per share, or a total of £65.8M, to shareholders.
July-June pretax profit rose to £96.2M from £83.6M a year ago. Revenue rose 12.1% to £603.7M.