Dunelm Group plc (LON:DNLM) said it expects to end the year modestly ahead of analysts' expectations and anticipates a strong consumer response once stores reopen following the Coronavirus (COVID-19) lockdowns.
The consensus for profit before tax is £120-£125mln for the year ending in June.
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All 13 stores in Scotland opened earlier this week while the 156 sites in England and Wales will resume trading next Monday.
The homewares retailer also expects to offer Click & Collect services in Northern Ireland as of next week, but the authorities have not yet decided when to allow stores reopening.
In the 13 weeks to March 27, group sales slipped 17% to £236p with digital sales making up 92% of the total, compared to 22% a year ago.
The quarter began with 80 stores closed to customers at the end of December, with the whole 174-strong estate closing at the start of the national lockdown on January 5.
Gross margin was higher than last year due to the reduced scale of the winter sale amid store closures.
The FTSE 250 firm expects fourth-quarter margins to be ahead of last year because the first lockdown hindered sales in April and May 2020.
As of March 27, the group had net cash of £40mln, from a £36mln net debt position a year ago, and access to £175mln of approved banking facilities.
Analysts at house broker Peel Hunt upgraded full-year profit before tax expectations by 8% to £130mln.
“Further digital improvements, range development and new customer recruitment all point to a market-beating performance ahead, with net cash on the balance sheet a pre-cursor to a potential autumn special dividend,” they noted.
Shares rose 2% to 1,381.1p on Thursday morning.