Dunelm Group PLC (LSE:DNLM) upgraded earnings expectations again with 2022 full-year profit before tax now forecast to be “modestly ahead” of latest analysts' expectations, after a hike in the July update.
The homewares retailer said sales growth in the first ten weeks of the new financial year has been encouraging, including a positive response from customers to its Summer Sale in July.
READ: Dunelm shares slide despite full-year profit guidance hike
It added it is well-placed to manage the supply chain disruption and inflationary pressures from raw materials, freight costs and driver shortages that have hit several businesses in the UK.
Dunelm plans to continue investing in supply chain capacity, hiring more people in digital and data engineering and building new capabilities, for example in product management, insight & analytics and sustainability.
It will also open three to five new stores, including smaller store trials. Total capital expenditure for the year will be around £30-40mln.
In the year to 26 June 2021, total sales climbed 26% to £1.3bn with profit before tax up 45% to £157mln. Net cash at period-end was £128mln.
The FTSE 250 group declared a final dividend of 23p, taking the full-year ordinary dividend to 35p, and a special dividend of 65p following the strong cash position at the end of the year.
Shares jumped 7% to 1,375.2p on Wednesday at the opening bell.