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(Alliance News) - Dunelm Group PLC on Tuesday said it has closed its stores to customers in response to the UK government's declaration of a nationwide lockdown to slow the spread of coronavirus.
Shares in the company were trading 4.2% lower at 633.50 pence each in London.
The retailer said for the first 10 weeks of the third quarter to March 7, total like-for-like sales were up 6.5%. Like-for-like store sales were up 2.4% and Dunelm.com was up 32%.
Total sales growth, including the benefit of new store openings, was 7.9% in the 10-week period.
Syston, England-based Dunelm, however, said that over the past two weeks, it has seen a "progressively negative impact" on trading as a result of the Covid-19 pandemic, with total LFL sales down 8.8% - driven by reduced footfall in physical stores.
The FTSE 250-listed company said it intends to temporarily close all of its customer facing operations from Tuesday, including Click & Collect.
"At the same time, we have also taken actions to protect the cash resources of the business. This includes our decision to cancel the interim dividend, which was due to be paid in April. Our capital policy is unchanged and we remain committed to returning surplus cash to our shareholders. In light of the extraordinary circumstances, the board believes it is important to retain the cash in the business until further certainty is gained," Dunelm noted.
As of Saturday, the company's net cash position stood at GBP11 million, comprising a drawdown of GBP14 million against revolving loan facility and GBP25 million cash.
By Tapan Panchal; tapanpanchal@alliancenews.com
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