Dunelm sales tick up but shares drop
Homewares retailer Dunelm has reported solid trading results which were ahead of the wider retail market for the golden quarter.
Investors weren’t convinced, however, and its share price dropped nearly four per cent in early trades.
Sales at the Leicester-headquartered business grew 1.6 per cent to £490m in the 13 weeks to December 28 in a “challenging market”, Dunelm said. Sales in the first half of the year were at 2.4 per cent.
While Dunelm said it was “mindful” of the Autumn Budget’s impact on the wage costs of its 11,500 employees, it added that initiatives to drive productivity were underway and it expected to mitigate the upward pressure on costs in the medium term.
“We’re pleased with our performance in the first half; we are growing sales and volume, with customers again responding well to the value and choice we offer across our ranges,” Chief executive Nick Wilkinson said.
“At the same time, we’ve made significant strategic progress across multiple initiatives which are helping us to improve our attractive, specialist offer and continue to gain market share,” he added.
During the first half of the year, Dunelm acquired 13 stores in Ireland and opened its first inner London store in Westfield.
“As we move into the second half of [the year], we have successfully launched our Winter Sale which is being well received by customers seeking amazing value across a wide choice of relevant products for the colder months.”
“As we navigate this challenging environment, we see even more opportunities to harness our unique business model, raise the bar on our proposition and fulfil our ambitions as The Home of Homes,” Wilkinson said.
Dunelm reported record revenue last year, up to £1.7bn from £1.64bn the previous year—growth of 4.1 per cent.
The firm’s share price has fallen by nearly six per cent in the past month and just over eight per cent in the past six months.