Dunelm share price climbs as furniture chain announces acquisition of pillow firm Fogarty
Shares at Dunelm climbed higher yesterday after the furniture chain announced a rise in first quarter sales and announced it has acquired 200-year-old pillow group Fogarty.
The FTSE 250 homeware retailer, which sells everything from curtains to bed linen, said like-for-like sales rose by 4.4 per cent to £171.8m in the three months to 3 October.
Total revenue including home delivery and newly opened stores was up by 12 per cent to £202.3m.
Dunelm is majority owned by the Adderley family, who founded the business from a market stall selling curtains in Leicester in 1979.
Last year, it set out an ambitious target to grow sales by 50 per cent over the next five years. It also plans eventually to have 200 out-of-town “superstores”, with a focus on the south of England. It currently has 149 after opening one in the quarter.
Dunelm also announced it has bought the rights to the Fogarty brand, which it already sells in its stores and supplies pillows, duvets and mattress protection products.
Chief executive Will Adderley who will hand over the reins to former Dixons boss John Browett next year, said the deal “strengthens our specialist homewares retail proposition and provides a number of potential growth opportunities.”