Shares of Dunelm Close Higher As Sales Increase

By Rodhullandemu from Wikimedia Commons

Last Thursday, the shares in Dunelm, a home retailer, ended the day with nearly nine percent higher as the investors praised a stronger performance with regards to its sales.

In the 13 weeks to the end of March, the like-for-like sales were up by 5.6 percent, with growth observed both online and in-store.

Online shoppers turned to the kitchen kit and bedding seller, increasing comparable sales by 36.4 percent as compared to this time in 2017.

The company’s physical stores also contributed, with a sales growth of 2.8 percent, which the analysts at Peel Hunt considered as “all the more impressive given the negative impact from snow disruption.”

Overall, the revenue of the company was up by 5.1 percent at £268.2m.

Nick Wilkinson, the chief executive of Dunelm, stated: “Our continuing market share gains in the Homewares category reflect the underlying strength of our brand and operating model, and enhance our position as market leader.

“As a result, our expectations for the full year remain unchanged.”

During the quarter, the margins dropped again by 15 basis points, even though this was slower as compared to the 180-point decline during the first half of the financial year as it made notable progress to improve the margins for Worldstores, which the company acquired in 2017.