Homeware retailer Dunelm's sales rise 10 pct
(Adds analyst comments, details, share movement)
April 3 (Reuters) - Home furnishings retailer Dunelm Group (LSE: DNLM.L - news) Plc reported a 9.9 percent rise in third-quarter sales, helped by a pickup in home-related spending and new stores.
Dunelm, which sells bedding, curtains, furniture and home utility items, said total sales jumped to 195.4 million pounds ($325 million) for the 13 weeks ended March 29, from 177.8 million pounds a year earlier.
Gross margin increased nearly 1 percentage points.
British consumer sentiment rose in March to its highest level since mid-2007, a survey from researchers GfK (Frankfurt: GFK.F - news) showed.
"The company should benefit from a recovery in both the housing market and consumer confidence," Cantor Fitzgerald analyst Freddie George said in a note.
The brokerage increased its target price on the stock to 1,050 pence, reiterating a "buy" recommendation.
Dunelm said on Thursday like-for-like sales, which remove the impact of new stores, rose 5 percent in the third quarter.
The group, which opened 4 superstores in the quarter to take its total to 10, said it was targeting 200 superstores in the medium term.
Shares in the family-run business were up 2.9 percent at 1000 pence at 0737 GMT on the London Stock Exchange (Other OTC: LDNXF - news) . Dunelm is one of the top percentage gainer on the FTSE 250 index ($1 = 0.6012 British pounds) (Reporting by Aastha Agnihotri in Bangalore; Editing by Joyjeet Das (Shenzhen: 002421.SZ - news) )