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Dunelm to beat profit forecasts as winter sale goes well

Dunelm says it is “well-positioned” in the market thanks to its product range and prices

Dunelm

Dunelm PLC (LON:DNLM) shares rose on Wednesday after the stores group said it expects full-year profit before tax to be “slightly” ahead of expectations as its winter sale in the third quarter has started “well”.

Analyst estimates are in the range of £135mln to £137.3mln but the homewares group said it will beat the top end, in its sixth upgrade in a year.

READ: Dunelm comfy on profit expectations as online sales surge

The FTSE 250 furniture, cushions and curtains retailer said it is “well-positioned” in the market, despite uncertain consumer spending outlook, thanks to its product range and prices.

In the 26 weeks to 28 December, like-for-like revenue rose 6% to £568mln, while gross margin inched up 1.2% to 51.5%. Profit before tax jumped 19% to £83.6mln.

Analysts at 'house' broker Peel Hunt said Dunelm continues to grab market share.

“The growth in customer numbers and Dunelm’s digital capabilities means the group is increasing its relevance in the space, as illustrated by the growth in both store sales and online sales,” they said in a note.

By lunchtime trade, Dunelm shares were 5.9% higher at 1,272p.

 -- Updates share price --

 

Quick facts: Dunelm Group plc

Price: 1318 GBX

LSE:DNLM
Market: LSE
Market Cap: £2.67 billion
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