The shares of Dunelm (LSE: DNLM) added 17p to 926p during early-morning trading after the Leicester-based home furnishings retailer today announced its half-yearly results.
The FTSE 250 member, which operates 140 stores nationwide and sells more than 20,000 products, reported revenue for the 26 weeks that ended 28 December had risen by £16m, or 4.8%, to £356m.
The results also revealed pre-tax profits had rallied 2.9% to £61m and operating profits were up 4.5% to £62m.
The statement added that shareholders should expect an interim dividend of 5p per share, up 11.1% on the previous dividend of 4.5p.
Nick Wharton, Dunelm’s chief executive, said:
“We have further strengthened our customer offer, particularly through service, and improved our infrastructure, whilst increasing scale through expanding the store portfolio and growing multi-channel. We have also invested significantly in increasing brand awareness, including through our first TV advertising campaign, and we are encouraged by the early results we have seen from this. I thank all my colleagues across Dunelm for their hard work in helping deliver these considerable achievements.
“Whilst we are cautious about consumer spending trends overall, the combination of a customer offer that continues to appeal to a broad spread of consumers, a significant new store growth opportunity and an exciting multi-channel agenda all provide us with a high degree of confidence in Dunelm’s future growth prospects…”
Furthermore, Mr Wharton claimed Dunelm had committed to open ten new sites in the current year, encouraged by “continued growth in multi-channel sales”.
Of course, whether today’s half-year results as well as the wider prospects for the home furnishings sector both combine to make Dunelm a ‘buy’ right now is something only you can decide.
