Dunelm has posted a rise in quarterly sales after strong demand for its summer ranges helped offset a drop in store footfall during June’s extreme heat.

The company’s sales climbed 2.9 per cent to £428m in the fourth quarter, bringing its total revenue for the year to approximately £1.83bn.

Dunelm said shoppers ‘responded well’ to its seasonal ranges, which span outdoor furniture, garden accessories and products designed for warmer weather.

However, it added that footfall across its store estate declined during two separate weeks of extreme temperatures as shoppers stayed away from retail destinations.

The company operates more than 200 stores across the UK and Ireland.

The performance represented an improvement on the previous quarter, when sales rose 2.1 per cent to £472m amid weakening consumer confidence and softer discretionary spending.

Dunelm said customers increasingly gravitated towards discounted products during the second half of its financial year, reflecting continued pressure on household budgets and intense promotional competition across the homewares market.

Despite the shift towards lower-priced products, the retailer maintained its annual profit forecast as favourable foreign exchange movements and tight cost control helped protect margins.

The company expects full-year pre-tax profit to come in towards the lower end of analysts’ previous forecasts of between £210m and £217m.

Dunelm had lowered its outlook in April after reporting a “broad-based softening” in sales towards the end of its third quarter, citing a more uncertain economic and geopolitical environment.

At the time, the retailer said it was not assuming any immediate improvement in consumer confidence, despite planning a busy final-quarter programme that included its summer sale.

Dunelm will publish its full-year results in September.

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