Dunelm, the UK's largest homewares retailer, said its full-year profit expectations remain unchanged after trading recovered strongly in the second half of its first quarter.
The company expects adjusted pre-tax profit for the full year to be broadly in line with the prior year.
It cautioned that first-half profit would likely come in below last year's level, with benefits from its strategic plans weighted towards the second half.
Total sales rose 1.1% to £433 million in the 13 weeks to 26 September, against a tough comparative when sales grew 6.2% a year earlier.
The quarter got off to a soft start, with sales down around 3% in the first six weeks during a spell of exceptionally warm weather.
Trading then rebounded to growth of around 4% in the final seven weeks as conditions normalised.
Gross margin edged up 10 basis points year on year, helped by a foreign exchange tailwind.
Made to Measure window treatments was the standout category, delivering double-digit growth, while Cook and Dine also performed well following recent range refreshes.
Digital sales accounted for 41% of total revenue, up one percentage point year on year.
The company said it is making progress on its three-year growth strategy, Winning Hearts & Homes, covering store renewals, new openings and technology investment.
Five store renewals have been completed, with early trading uplifts described as encouraging, and two new store openings are expected in the first half of the financial year.
RFID stock-tracking technology is now live in a small number of stores, while AI tools have been deployed in the customer contact centre.
Chief executive Clo Moriarty said the company is "encouraged by the momentum we built as the quarter progressed" and looks forward to its peak trading period with confidence.
Dunelm will release its second-quarter update on 14 January 2027.
