Dunelm, the national furnishings and homeware chain, expects to beat original profit forecasts for the year after the successful launch of its new digital platform.
The Leicestershire-headquartered retailer said the move to a new website had not caused any teething issues, allowing it to maintain strong online sales.
It added that margins were better than predicted on the back of 鈥渟ourcing gains and better sell through鈥.
Shares in the group were up 17 per cent this morning at 976p.
The chain 鈥 market leader in the 拢13 billion 海角视频 homewares retail sector and a big player in the 拢11 billon 海角视频 furniture market 鈥 said operational costs had also been 鈥渨ell controlled鈥 in recent months to bring costs in line with expectations.
Dunelm was launched on a Leicester market stall in 1979 and floated on the London Stock Exchange in 2006.
It now has 170 sites across the 海角视频 and a turnover of around 拢1.1 billion.
Its online operation Dunelm.com was launched in 2005, and in 2016 it bought the Worldstores Group to enhance its digital capabilities.
In a previous performance update, Dunelm warned it saw 鈥渕ixed鈥 trading in September due to a 鈥渟ofter homeware market鈥. It posted a 7.5 per cent rise in total sales to 拢262.6 million for the three months to September 28.
Today the company warned its increased profit expectations were on the assumption that there is 鈥渘o significant change in consumer demand as a result of the outcome of the General Election鈥.
In the new update, Dunelm said it has recently 鈥渕aintained strong sales growth online and in stores鈥.
It said online sales have been bolstered by the 鈥渟uccessful transition鈥 of all customers on to the new digital site, which customers had responded well to.
It will provide shareholders with a more detailed trading update at the start of January.
In an update to the stock market, Dunelm said: 鈥淕ross margins have been stronger than expected as a result of sourcing gains and better sell through.
鈥淥perational costs remain well controlled and in line with our expectations.
鈥淚n light of the above, the board now anticipates that the full-year profit before tax will be higher than our previous expectations, assuming no significant change in consumer demand as a result of the outcome of the general election.鈥
Russ Mould, investment director at stockbroker AJ Bell, said: 鈥淎 lot can happen in two months in the world of retail and in Dunelm鈥檚 case the winds have changed in its favour.
鈥淎 trading update in October was mixed with fairly lacklustre sales growth following a much stronger period earlier this year.
"That may have simply been a blip with the homewares seller now much more upbeat, although it doesn鈥檛 provide any sales figures.
鈥淜ey to its latest bullish trading update is a good customer response to its new website.
"That鈥檚 going to be a huge relief to the company as there is always a fear that new IT projects won鈥檛 work properly on initial deployment.
鈥淎lso in its favour is an improvement in margin which has to be commended given how the general direction of travel for retailers is margin compression in a world of heavy discounting.
鈥淟ast year Dunelm had a very strong festive period with 9% like-for-like sales growth in the 13 weeks to 29 December.
"The management team has historically been very cautious with regards to predicting earnings which helps to keep expectations from getting too high.
鈥淣o-one knows how the general election result will impact consumer spending patterns and so the company has understandably avoided giving too bullish a comment about its outlook.鈥
