Homewares retailer Dunelm has reported another ‘solid’ quarter as revenues continued to grow by 1.8% to £203.8m, despite total like-for-like sales experiencing a downfall by 0.6%.

Dunelm said this was adversely impacted by a combination of an earlier Easter and that the previous financial year included a 53rd week. Adjusting for these calendar impacts, underlying like-for-like performance was up by 2.9% for the 13 weeks to 2 July 2016.

Home delivery sales continued to be a stand out performer, up by £2.3m to £16m for the Q4, showing a solid growth of 16.8% - but slower than its 27.6% increase in Q3.

The group confirmed that two new stores were opened in Nottingham and Sheffield – both relocations of other stores, keeping the portfolio at 152 outlets across the UK, with plans afoot to open seven more, including one in London, in the next financial year.

Dunelm said that it anticipates that profit before tax for the 52 weeks ended 2 July will be in line with market expectations, while remaining strongly cash generative.

Commenting on Dunelm’s performance, John Browett, chief executive, said: “I am pleased to report another solid quarter of underlying growth, particularly given the more difficult retail trading environment which we believe has seen the Homewares market decline in the quarter. Overall, therefore, we are continuing to increase our share of that market through our focus on delivering everyday value and excellent service for customers.

“The current uncertainty makes the future trajectory of the economy and consumer confidence unclear; however, we are confident that Dunelm, as market leader, will continue to strengthen its position through its low cost operating model, everyday value, consistent cash generation and strong balance sheet.”