Dunelm’s special 40p dividend is a positive signal given the uncertain macro backdrop, according to Barclays.
Analysts at the bank said that today’s statement was full of examples of ongoing investment to help deliver future market share gains, which it considers “very encouraging for the longer term.”
Included in that are more products and further work on digital, as well as more convenient delivery options.
“There is more to come such as long-term credit, using data to inform plans for new stores and refits, and in marketing, data will be used to ensure more cost-effective customer acquisition,” said the broker.
Barclays said revenue growth was “strong”, driven by market share gains which were up 1.6% compared to the homewares market, which was down 2%.
Full-year profit before tax guidance from the bank is left at £183.5mln, ahead of company consensus of £176mln.
Earlier today, Dunelm reported a fall in first-half profits and warned that the outlook remained unpredictable.