Dunelm Group plc, the UK's leading homewares retailer, has reported strong sales growth and margin improvement in its first quarter trading update. Total sales increased by 9% to £390 million, driven by volume, with digital sales accounting for 35% of total sales. The company's store roll-out plan remains on track, with one new store opened in Q1 and three more expected to open before the end of Q2. Dunelm has also focused on offering outstanding value to customers while increasing gross margin by 120 basis points. The company's growth was broad-based across categories, with new autumn/winter ranges and collaborations resonating well with customers. Upholstery ranges, including sofas and sofa beds, also performed strongly. Dunelm benefited from a net tailwind from freight and foreign exchange rates, contributing to the improvement in gross margin. The company remains confident about its prospects for continuing to drive sustainable growth.