Dunelm sales better than expected thanks to lockdown living space upgrades
Homeware’s retailer Dunelm enjoyed a better-than-expected sales lift over the tail end of the UK’s third national lockdown, the group said today, despite only being able to trade for five weeks after the 12 April easing of restrictions.
Customers were able to flock to stores in mid-April after a winter lockdown, despite the reduced trading time, Dunelm has reported a 59 per cent increase in sales in the seven weeks, starting 28 March this year.
Dunelm not only reaped the benefits of pent-up demand following extended store closures but with most customers working from home – many were able, and were keen to, upgrade their living spaces.
Sales growth has been “very strong”, the UK retailer said, since it re-opened the majority of its stores in April. The group has also seen positive digital growth from its home delivery and Click & Collect services.
As a result, Dunelm’s shares soared 8.81 per cent this morning, taking its overall share price to 1,574.00.
The buoyant homewares market, alongside the “unseasonably cold” Spring weather, also helped Dunelm secure a strong trading result, the group said.
After the sturdy five weeks since its stores re-opened, the retailer’s board expects its full-year profit before tax will be “significantly ahead” of analyst forecasts.
The group admitted there remains some uncertainty in the short-term outlook, but expects 2021’s full-year profit before tax results to be in excess of £148m.
Meanwhile, its share price rested at 1,460.00 this morning on the London Stock Exchange.