Dunelm Shares Open Higher as Sales Rise Over the Holiday Period

Dunelm (LON: DNLM) shares opened higher Thursday after the company reported a strong rise in sales over the key Christmas period.

The homewares retailer said total sales for the 13 weeks to December 31 came in at £478 million, 18% higher than the same period last year and 48% above the pre-pandemic period.

The company said its performance reflects the fact that its Autumn and Winter product ranges were particularly popular with customers, while it also saw growth across other categories. In addition, customers aiming to mitigate higher heating costs also boosted demand for Dunelm's ‘Winter Warm' assortment and products such as heated indoor airers.

There was growth for Dunelm in its stores and online, with digital sales making up 35% of its total sales in the quarter, 2ppts higher than the same period last year.

The timing of the company's Winter Sale also helped to boost its sales growth rate in the quarter, an impact which it said will reverse in Q3.

Dunelm's guidance for FY23 is unchanged, but it expects pre-tax profit for the full year to be above current market expectations, with the company stating the current analyst consensus range is between £131 million to £186 million.

“We have delivered another strong performance and the relevance of Dunelm's value offering has really come to the fore,” said Dunelm Chief Executive Officer Nick Wilkinson. “Customers have enjoyed shopping our ‘Winter Warm' ranges as they find innovative ways to manage rising heating costs. Our Christmas assortment also proved popular as customers prepared their homes for the festive period.”

Despite opening the session at 1,104p, Dunelm shares are now down 0.47% at 1,069p