Dunelm skips final dividend but posts strong summer sales


Dunelm (LON: DNLM) has reported a 13.3% fall in pre-tax profits for the year ending in June.

However, the retailer remains confident and it saw strong trading for July and August of this year, sales grew by 59% and 24% respectively.

Dunelm will not be paying a final dividend this year.

Chief executive Nick Wilkinson said: “We made good progress before the onset of Covid-19, building our digital capabilities, extending our product choice and value, and broadening and deepening our customer base.”

“Whilst the year to date performance has been materially ahead of our initial expectations, it is very difficult to provide any meaningful guidance on the future outlook given the uncertainty in the wider economy and the potential impact of further regional or national lockdowns.

“However, we remain confident in our ability to adapt to the environment and are well positioned to continue to grow market share,” he added.

Analysts at house broker Peel Hunt said in a note: “The short-term strength in online sales (up 130% in current trade) and stores (up double-digit LFL) is unlikely to end in three weeks as our forecasts might suggest.”

“However, we are more interested in how Dunelm’s customer base is broadening, driven by rising brand awareness and increased digital interactions. Store only customers are also shifting online, which should lead to a rising base of active customers shopping more categories, more frequently.”

Dunelm shares (LON: DNLM) are trading -2.32 at 1,429.08 (0929GMT).

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Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.