Dunelm (LON: DNLM) have seen a drastic downturn in their share prices as sales and revenues fell in their most recent financial report.

In Thursday trade, the stock price of Dunelm fell by 14.23% after opening lower 793.5p this morning, eventually crashing to lows of 700.2p

In Dunelm’s most recent trading update, reports suggested that sales grew more than 6% in the past three months. However, in the previous quarterly report this fell way short of the estimated 11% increase.

As many firms still await the outcome of the Brexit saga, Dunelm in a press report alluded to the uncertainty of Brexit mounting political tensions leading to poor performance.

Dunelm was founded in 1979 as a market stall selling curtains and subsequently opened its first office in Leicester in 1984.

With over 170 stores nationally, Dunelm have a market cap of £1.4 billion and are looking to increase digital exposure through website sales.

Steve Miley from Ask Traders commented “‘Expectations for sales were in the region of 11 per cent, so the increase reported is a little disappointing. After a strong end to the previous year, expectations were riding high. Brexit uncertainty, consumers reining in spending and shopping habits changing are challenges which appear to be starting to catch up with the homeware retailer”

In the previous quarter, sales grew by over 10% hence the recent reports published show both underperformance and distance between projections and outcomes. 

Dunelm have build a strong brand reputation in the furniture industry, and certainly have the recent figures to back this up, however this shows a slow period after a while.

Russs Mould from AJ Bell said the numbers “would still be the envy of many retailers, but arguably not enough to sustain the excitement behind the Dunelm story”.

Mould also added “Dunelm’s first quarter trading update didn’t receive the kind of reception management may have expected. The home furnishings chain defied retail gloom to post a series of positive trading updates earlier in 2019 but the stalling share price suggests the strong performance has already been priced in by the market.”

Higher authorities from Dunelm have attributed a few factors to the crash in share prices noting the weakening pound, political uncertainty with Brexit and a soft market.

Looking at other news in retail, there have been updates on  McColl’s Retail Group PLC (LON: MCLS), Boohoo Group PLC (LON: BOO), N Brown Group PLC (LON: BWNG)