Underlying profits rose almost 20 per cent to£49.1 million on sales ahead 10.5 per cent to£391.8 million. The only blot on the landscape was that like-for-likes fell 5.7 per cent in the first 10 weeks of the financial year.
Hold, advised Numis. It noted that although Dunelm operates in a hard-pressed sub-sector and faces input cost pressures, it has “a solid story of sustainable medium term growth through the slow and steady roll-out of a strong store proposition”.
Seymour Pierce reinitiated coverage with a hold recommendation. Dunelm is well managed and should benefit from its recent acquisition of Dorma but is fairly valued in the light of difficult trading conditions, said the broker.
Citi, which rated Dunelm a medium-risk hold, observed: “Organic superstore growth, supply chain initiatives and the development of its online offer should offer attractive growth prospects.”
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