Dunelm Group PLC's (LSE:DNLM) interim results should be upbeat if last month’s trading update is anything to go by.
The home furnishings retailer said it expects pre-tax profits for its fiscal year to be above current market expectations.
Sales in the last quarter were 18% higher than the same period a year earlier, improving from the 8% decline in the first quarter.
However, Dunelm did urge caution, suggesting margins will remain under pressure due to two sale events expected in the second half of the year.
Any further update on the inflation outlook for the rest of the year, therefore, should shed further light on margins for the remainder of the year.
Shares have staged a bounce back in 2023, up 18% to 1,172p.
Analysts at Hargreaves Lansdown said: ‘’Dunelm has shown hardiness amid the cost-of-living headwinds. Its product range proved to be the right mix as customers navigated the cost-of-living crisis and the cold snap, with its winter warm range of goods proving appealing."
They said investors will want to hear whether full-year guidance remains intact and how it is catering for squeezed shoppers and competition.