Total sales for the full year ended July 2 2011 increased 9.3% at Dunelm Mill, though like-for-like (lfl) sales dipped 0.6% compared with an 8% lfl uplift in the previous year.
Total sales for the 52-week period reached £538.5m, up from £492.8m in the previous year. This represents a 9.3% increase, made up of the 0.6% decline in lfls and a 9.9% contribution from new space in the period.

Ten new stores opened in the financial year, including one relocation taking the total store portfolio to 103. The group estimates potential for up to 200 stores and has already contractually committed to 13 new superstores, including two relocations.

The fourth quarter, 13 weeks to July 2, performed more strongly than the full year average, with lfl sales up 1.9% taking total sales growth for the final quarter to 11%. However, the previous year had seen a corresponding 1.9% drop in lfl sales in the same period.

Gross margin has also improved, with the Group expecting an approximate uplift of 120 basis points and it expects profit to be in line with expectations.

The group also expects to take occupancy of a new head office, currently under development, in September this year.

Commenting on the results, chief executive Nick Wharton said: "In what has been a particularly challenging year, we are encouraged both by the trading performance and by the strategic development of the business... The combination of satisfactory trading and a disciplined approach to operating costs means that the board anticipates that profit for the year will be in line with current market expectations."