(Reuters) - British retailer Dunelm Group Plc (DNLM.L) said the market for homewares continues to weaken as it reported a 2.2 percent fall in total comparable sales for the third quarter.
Dunelm, which sells cushions, bedding and kitchen equipment, said that total third quarter revenue rose 11.4 percent to 255.1 million pounds, but warned that the retail environment was volatile.
Shares in the company were up 2 percent at 0709 GMT, making them one of the top three gainers on FTSE mid cap .FTMC index.
The company, which currently operates 163 stores, said it expects 1.5 percent of like-for-like sales from the third quarter to move to the fourth, citing a late Easter this year.
Dunelm had previously warned that it would increase prices on a number of products in the coming months to offset the impact of a weak pound.
Reporting by Rahul B in Bengaluru, editing by Louise Heavens