Homeware specialist Dunelm said yesterday that its total sales for the 18 weeks to November 3 rose by 10.9 per cent with like-for-like sales growing by 5.6 per cent.
However, the Midlands-based group, which has outlets in Birmingham, Oldbury and Wolverhampton, said that in common with other retailers, it was remaining "cautious" about the outlook for the coming months.
In a statement issued ahead of its annual meeting, the retailer, now focusing on out-of-town locations, said it had experienced a year-on-year strengthening of gross margin so far this year.
The group said that even though growth rates had eased since the high levels reported at the time of its preliminary results, customers were still visiting its stores.
"Our offer continues to benefit from increased focus given to our in-store activities, following the successful completion of major projects in the early part of the last financial year: the implementation of major new IT systems, commissioning of our new central warehouse, and our flotation," said the statement.
Since the start of the financial year the group has also opened new super-stores in Aberdeen and Shoreham and both are trading well, while fit-outs are also being completed in Leeds, Eastbourne and Bournemouth with Dumfries and Peterborough in the pipeline.
In all, nine new stores are being opened representing a £20 million investment by the group. The new stores will bring the group portfolio to 76 by the end of the year.
Chief executive Will Adderley said: "Overall trading performance to this point in the financial year remains pleasing. We have continued to make good progress with our pipeline of new store openings."
Shares closed down 4p at 207p.