Overview
- Sales growth slowed to 1.6% in the 13 weeks to 27 December, down from 6.2% in the first quarter.
- Dunelm guided full-year pretax profit to the lower end of £214 million to £227 million and forecast first-half pretax profit of £112 million to £114 million.
- The update sent the stock down about 18% in morning trading on Thursday.
- Management cited an especially high level of competitor discounting and digital marketing around Black Friday, with softer furniture sales and availability issues now targeted for recovery.
- Online accounted for 42% of Christmas sales, and the new CEO is focusing on availability improvements while continuing selective expansion, including two planned superstores after a recent Wandsworth opening.