Dunelm escaping supply chain issues, says AJ Bell9 Sep 2021 07:49
Dunelm (DNLM) is delighting investors by dishing out dividends and, unlike its retail peers, seems to have avoided supply chain issues.
The shares jumped 12.8%, or 165p, to close at £14.51 after the homeware retailer announced it was returning £178m to shareholders after enjoying sales of £1.3bn in the 2021 financial year, up from £1bn in 2020.
Dunelm enjoyed a bumper year despite physical stores being shut for more than a third of the period as online shopping picked up the slack.
AJ Bell analyst Russ Mould said: ‘Dunelm has been busy restocking its warehouses after strong demand in its 2020 financial year ran down stockpiles, and it seems to have escaped any problems [on the supply] front.
‘It pays close attention to stock levels to ensure it can meet customer demand and management has also been working hard to mitigate inflationary cost pressures from raw materials, freight costs and driver shortages across its industry.’