Dunelm underlying sales worsen

LONDON (Reuters) - Home furnishings retailer Dunelm (DNLM.L)reported a worsening of underlying sales in recent weeks, but said it was taking market share and that it had increased gross profit margins.

The firm, which sells products like curtains, bedding, blinds, rugs and lighting from about 90 mostly out-of-town stores, said on Tuesday like-for-like sales were down 5.6 percent in the 26 weeks to December 27.

This compares with a 3.9 percent decline reported after 18 weeks of the period.

Gross profit margins were up 100 basis points as the group held back from unplanned discounts or promotions.

(Reporting by Mark Potter)