Dunelm Share Chat (DNLM)

Deutsche Bank says "buy". Target price is only 1313p. Current sp is already 1146, just 15% upside, what a joke!

20 April 2023

Dunelm Group plc



Third quarter trading update



Strong trading with expectations unchanged

That was a decent day today.bis that dividends being reinvested or something else ? 2.34% up

Payment 11th April.

Peel Hunt today has stated they see more upside than downside risk. Also that Dunelm's first half profit was stronger than expected & their medium-term growth prospects remain compelling. BUY with a target of £13-75.
Now I say also buy for their 15p dividend plus their special dividend of 40p too. Both are going ex div on 17th March.

Reuters) - British homeware retailer Dunelm Group Plc (LON:DNLM) reported a lower half-year profit on Wednesday as inflationary pressures and a cost-of-living crisis in the UK hurt its margins.

Still, the company declared a special dividend of 40 pence per share after sales in the six-month period ended Dec. 31 rose 5%.

Households in Britain will likley tighten their belts this year as prices of everything continue to rise, leaving customers to shift in what they buy and where they buy from.

Dunelm, which runs more than 179 stores across the UK and a digital platform, still expects its full-year profit to beat market forecast of 176 million pounds ($213.07 million), but warned that the consumer outlook remains unpredictable.

"While forecasts remain unchanged given consumer uncertainty, we see more upside than downside risk," analysts at Peel Hunt said in a note.

Gross margin for the period was down by 170 basis points.

The company, which sells furnishings ranging from cushions and bedding to kitchen equipment, said profit before tax was down about 17% for the half year at 117.4 million pounds from year-ago levels.

Hopefully!

RNS and special divi should lift sp today and beyond imv.

'' Analysts at Berenberg raised their target price on retailer Dunelm from 1,130.0p to 1,240.0p on Tuesday, stating the group's numbers "increasingly well underpinned".
"We believe that Dunelm can continue to provide additional shareholder returns, underpinning a total dividend yield of 6.5%. While not our base-case forecast, we believe a special dividend could be declared as early as H1 results on 15 February," concluded Berenberg.''

'UK retail sales fell unexpectedly last month, capping the worst year on record after a cost-of-living squeeze and strikes rattled the industry.
The volume of goods purchased in shops and online dropped 1% in December after a decline of 0.5% the month before, the Office for National Statistics said Friday. Economists had expected a gain of 0.5%.'
This just highlights how good Dunelm are in growing their income with such a backdrop.

(Sharecast News) - Homewares retailer Dunelm said it expected annual profits to be above expectations as consumers sought value for money amid the cost of living crisis.

The company on Thursday said second-quarter sales were up 18% year on year, with customers flocking to buy items such as heated indoor airers to mitigate soaring energy costs.

Pre-tax profits are now forecast to be above a current company-compiled consensus average of analysts' expectations of £172m, with a range of £131m-186m.

"We saw growth both in stores and online, with digital sales making up 35% of total sales in the quarter, 2ppts higher than the same period last year. Digital sales growth was particularly strong in the late Autumn and run-up to Christmas," the company said.

Interesting that we have such a large rise today..up 39p.

11th Jan. there might be a trading update plus also it was 9th Feb. 2022 that a special dividend was declared (37p) that went ex div 24th Feb., so not too long to await. Could be advisable to purchase shares before their trading update. So plenty of buying happening today and tomorrow is my guess.

Hi IP3LY,
Yes, Dunelm is due to go ex-div tomorrow (10 Nov), with the dividend being 26p payable on 5 Dec 2022, as per their Final Results here:-
https://www.lse.co.uk/rns/DNLM/preliminary-results-jkkih96adf2gx3j.html
They say that the dividend is subject to approval at their AGM, which is due to take place on 30 Nov:-
https://www.lse.co.uk/rns/DNLM/annual-report-and-accounts-and-notice-of-agm-lrnepf20z3lfm4y.html
All the best,
Mike.

Hi, can someone tell me if it is Dunelm’s Ex-Divi tomorrow and know how much?

Cheers.

Invesco, like them and have been building a stake.

Just read the finals late admittedly and didn't realise this trading update was coming out.However there aren't many lse publicly listed retail companies who are turning such a good profit in such challenging circumstances.Admittledly, it's not plain sailing from here macro wise.However, there is little risk of needing more funding as long as the government & BoE get inflation under control in the next few years...If you have a good, trusted cash generating consumer brand & good management in a business, there's much less to potentially worry about at night.

Dunelm reported a dip in first quarter sales. For the 13 weeks to October 1, total sales for the furniture retailer came in at GBP357 million, down 8% from the previous year. This was "as expected, given the very strong comparative period, with Q1 last year benefiting from pent up demand and our rescheduled Summer Sale", it explained. Looking ahead, it noted a "challenging" macroeconomic environment, including recent volatility in exchange rate movements. However, Dunelm said it is "very well hedged" for the remainder of the year. It reiterated the annual guidance from last month.

If they can make such profits in these times.Wow.That's all i can say.My only worry I'm starting to worry if what they're doing is legal!

Thursday 20 October
Dunelm Group PLC Trading Statement

Ahem! Well, it did. Up today 6%. Excellent. Long way to go though.......

.

https://www.bbc.co.uk/news/business-63129555

as the sp has been moving up since 1st September. Massive and many director buys above the current sp level also. Then very good results. I mean what else can a Company do?? Seems to be they are well organised and efficient Company.
All IMHO.

Generous dividend policy too. Paying 26p going ex div. 11th Nov. with also the talk of a special dividend early 2023 if approved at their meeting.