Dunelm has said its full year profit is likely to be slightly ahead of current market expectations after sales increased by 6% to £381 million in its fourth quarter.

In the 13-week period to 1 July, digital sales made up 39% of total sales, which is two percentage points higher than at the same time in the prior year,

During the quarter, Dunelm reduced prices on over 1,000 lines. The retailer said its product offering resonated strongly with customers, as cooler drove sales of bedding and rug ranges and warmer temperatures boosted sales of garden furniture and decorations.

The fourth quarter performance means that Dunelm now expects pre-tax profit for its full year to be slightly ahead of current analysts’ consensus of £188 million. Full year sales have risen by 6% to £1.63 billion.

Looking ahead, the retailer said it sees significant headroom to deliver further profitable growth as it continues to invest in digitalising and developing its business to improve the customer offer and to make its operations more efficient.