Dunelm’s new catalogue and first TV ad campaign have helped like-for-likes increase 2.9% in its second quarter.
The 131-store retailer has planned to open seven new shops by the end of 2014, and is targeting to open a further 200 in the long term after experiencing a jump in sales of 4.8% to £356.3m in the 26-week first half, when it opened five net new stores.
Dunelm chief executive Nick Wharton said: “Dunelm traded robustly during this key period with our trusted every day low price positioning retaining a strong appeal for customers.
“Our home delivery proposition has become much stronger as a result of our new fulfilment centre, and we are beginning to see the benefits from our increased advertising investment to drive brand awareness.
“These investments have been funded through continued gross margin expansion and with continuing profitable growth from new stores, the board anticipates that profit before tax for the first half of the year will be approximately £61.5m.
“With a strengthening customer proposition, increasing brand awareness, a significant new store growth opportunity and an exciting multichannel agenda in place, the board remains confident in the long term growth prospects for the business.”
