* Homewares retailer reports record Christmas trade
* Says on track to beat market expectations
* Store performance after COVID closures 'encouraging'
* Shares up 5%
(Adds shares, analyst reaction)
LONDON, Jan 12 (Reuters) - British homewares and furniture
retailer Dunelm reported record Christmas sales on
Wednesday, putting it on track to soundly beat profit forecasts
and lifting its shares.
The company, which has 176 stores and an online operation,
reported sales of 407 million pounds ($555 million) for the 13
weeks to Dec. 25, its second quarter, up 13% on a year earlier
and up 26% on the same period in 2019, before the pandemic.
It said it had seen "particularly encouraging growth from
its stores", while higher full-price sales of seasonal ranges
helped boost margins by 160 points in the quarter.
Chief Executive Nick Wilkinson said: "Whilst there are
several macro uncertainties to be navigated, we feel well placed
to continue to deliver profitable growth across all channels and
grow market share."
Dunelm said that as long as there was no significant new
COVID-19 related disruption it expected its full-year pretax
profit to be materially ahead of market expectations.
Its shares were trading up 5% in morning deals, as broker
Peel Hunt upgraded its full-year pretax profit forecast by 27
million pounds to 206.1 million pounds.
Dunelm was a "business on form," the broker said, with a
proposition that was continuing to resonate strongly with
customers.
Before the update, analysts on average were forecasting
Dunelm's pretax profit to come in at 181 million pounds,
according to a company-compiled consensus.
($1 = 0.7335 pounds)
(Reporting by Paul Sandle Editing by Kate Holton and Mark
Potter)