Sparks commentary

Consumer

Sparks

Dunelm (LSE: DNLM) – Q125 revenue up 3.5% against tough comparative
Published by Russell Pointon

Dunelm has reported robust revenue growth of 3.5% to £403m in Q125, driven by volume, with gross margin up by 20bps. The revenue growth was achieved against a tough comparative of 9.2% growth in Q124 and was described as broad-based across the categories. Q1 is a relatively small quarter from a financial perspective, representing c 23% of FY24 revenue, while the current Q2 is the most important period, accounting for c 28% of FY24 revenue. Management has indicated that trading patterns remain volatile despite the positive lead indicators, which is consistent with comments elsewhere. Dunelm is making good progress on its strategic initiatives. Investors can look forward to space growth, with 10 new stores planned, and further improvements in the gross margin in the coming year, with an increase of 100bps per management’s guidance.

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