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 “sourcing gains and better sell through”.
Shares in the group were up 17 per cent this morning at 976p.
The chain – market leader in the £13 billion 海角视频 homewares retail sector and a big player in the £11 billon 海角视频 furniture market – said operational costs had also been “well controlled” 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 £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.
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In a previous performance update, Dunelm warned it saw “mixed” trading in September due to a “softer homeware market”. It posted a 7.5 per cent rise in total sales to £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 “no significant change in consumer demand as a result of the outcome of the General Election”.
In the new update, Dunelm said it has recently “maintained strong sales growth online and in stores”.
It said online sales have been bolstered by the “successful transition” 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: “Gross margins have been stronger than expected as a result of sourcing gains and better sell through.
“Operational costs remain well controlled and in line with our expectations.
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“In 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.”
Russ Mould, investment director at stockbroker AJ Bell, said: “A lot can happen in two months in the world of retail and in Dunelm’s case the winds have changed in its favour.
“A 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’t provide any sales figures.
“Key to its latest bullish trading update is a good customer response to its new website.
"That’s going to be a huge relief to the company as there is always a fear that new IT projects won’t work properly on initial deployment.
“Also 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.
“Last 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.
“No-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.”