Ahead of a year-end trading update, Dunelm Group PLC (LSE:DNLM) is one retailer that does not seem to be losing customers to the trading down effect in the cost of living squeeze, though investors have not heard from the chain since April.
Shares in FTSE 250-listed company, which hit all-time highs during the pandemic before falling back to pre-Covid levels last year, are up 34% over the past 12 months, despite a wobble in the past couple of months.
Analysts at house broker Peel Hunt said that after a 6% sales decline in the third quarter, sales are likely to fall around 4% in the fourth.
However, market share data shows the company is one of only two retailers in the category gaining market share compared to last year.
"We continue to believe that Dunelm is recruiting customers from all areas of the demand spectrum, including department store shoppers attracted by its value offering at all price points, one of the reasons why there is no sign of trading down at Dunelm.
"All this supports ongoing special dividends into the new financial year," said analyst
The broker is forecasting £184mln pre-tax profit for the year, "with the full-year outcome likely to be higher".