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Would like to see some market share data to see how they’ve done against John Lewis since the latter’s collapse.
I recall that in a very fragmented market, JL were mkt leaders with about 10% then Dunelm and a load of independents who were getting mopped up.
Could be a case of ‘last man standing’?
I don't blame them. The Range near me has been open, selling homeware, just because it has a 2m x20m Iceland frozen food section.
They have increased their inventories from £166M to £193M since December (they cite FY20 Q3: £147m), so if I am understanding it correctly, they may not have made a loss at all.
It looks like they lost about £20M in the quarter so the analysts were not too far off.
I am happy with that, especially as they say 'we expect to end the year modestly ahead of the top of the current range of analyst expectations' (so PBT >£125M).
‘....we expect to end the year modestly ahead of the top of the current range of analyst expectations’.
Decent performance imho given stores were closed.
It obviously still grates that other rival stores were classed as ‘essential’.
Thursday 8 April
Dunelm Group PLC Trading Statement
Results tomorrow.
They have said they were making a 'moderate' loss with the shops closed (except for click and collect) and funding their own furlough payments. They have never been clear what 'moderate' actually means but I believe that the consensus is for around a 25M loss for the quarter.
It will be interesting to see how this goes down if it is the case- I have put aside a bit of cash for any potential drop as it will be short lived with the shops opening next week. I don't expect we will get such a strong bounce as after the first lockdown but with people unable to travel abroad and entertainment venues still restricted I can see spending on the home featuring strongly at least for the next quarter (it may be anecdotal, but Mrs Monk certainly seems very keen to recycle my profits from Dnlm back into this sector...)
I agree Monkshood. I think Dunelm is fast becoming the new John Lewis.
The closure of more John Lewis shops will play into Dunelm's hands, it should help them to increase market share.
Mercantile (MRC) manager Guy Anderson believes Dunelm (DNLM) will be a winner from the Covid-19 pandemic despite its homeware stores being closed during lockdown.
The manager of the £2.4bn investment trust said post-pandemic he was backing companies that can take market share and that within retail there would continue to be ‘winners and losers because of the rapid evolution of the sector’.
Anderson said Dunelm was in a ‘fantastic position’ thanks to its investment in online channels.
‘Over the last couple of years it has revamped its proposition and it has delivered a huge acceleration in growth,’ said Anderson. ‘It has clearly benefited through the pandemic as consumers spent more on homeware.’
The manager said there could be a fall in spending on the home as consumers are ‘released from house arrest’, but its online sales mean Dunelm has gathered more information on its new clientele and the company ‘should be able to retain these customers’.
Shares in Dunelm closed up 4%, or 52p, at £13.57 on Tuesday.
Good day for us here. Wish I had kept all my investments in big caps like this ! lol !
In for a penny if it goes much lower.
Looks like all big caps down due to increased corporation tax I suppose ?
Thanks for the clear explanation, Monkshood.
Rgds, Mike.
If you are wondering about tonight's FTSE rns -
After the secondary placing there are now more shares which are deemed 'tradable', the investability weighting for the company changes with regards the FTSE indexes so that trackers will need to hold slightly more.
Barclays raised their target from 1600 to 1650 on 11th February
It seems amazing that it fell *below* the 1280 - it went as low as about 1260 early this morning.
For me the investment case has not changed since yesterday. Unfortunately I've not left myself enough cash available to top up.
ATB, Mike.
Picked up a few for the ride up and the juicy dividend. If the market supports 1280 that is good enough for me.
Family diversifying will be a non story later in the week. Dividend and star potential IMHO.
DYOR
GLA
Agreed, overdone.
You can fully understand the Alderly family wanting to diversify the Family wealth considering the situation we've all found ourselves in with the pandemic.
Will bounce from here.
at 1260p - this looks like a good buying opportunity DYOR of course
He has not gained much- sold 7% but the value of his remaining holding has fallen 9% - overdone imv.
Yep, straight down to the secondary placing price.... It is not like it was a capital raise and he still has a very significant holding so it should recover fairly quickly. This quarter will be poor but expecting a very strong rebound in the last quarter.
His price looks low to me - expecting a fall here today!
He got them away for 1280. It will be interesting to see what, if any effect it has on the price.
Good spot - thank you