Dunelm Share Discussion Threads

[bartyb] 26/10/2021 10:57

Still extremely very busy. However, there are increased supply costs. They are obviously watching competitors .Prices will have to rise but they will still remain the best value in the market.

[bartyb] 21/10/2021 09:48

Share price is ridiculously low. Trading is strong. Because it the shops are out of town and not in the high visibility retail parks it took some time for themto get well known.. Astep up in advertising last year was the main factor in raising visibility. As customers grew so word of mouth helped sales to grow more. Now every household in the country is aware of Dunelm and they love it. Sales will continue to grow and analysts' estimates of 1600+ are where they should be. AS i said sales are strong and as stated in the Times they have managed the stock levels well despite the supply and drive shortage.

[tole] 15/10/2021 14:04

Here's the times update earlier todayOnline growth is a comforting thought for DunelmEmma PowellFriday October 15 2021, 12.01am BST, The TimesYou can see why Dunelm trumpets its growing online sales so loudly, because getting there was a hard slog. To judge by the market plaudits, the protracted and costly integration of the homeware retailer's loss-making Worldstores deal has been forgiven.Lockdowns made the timing of that acquisition, sought by management for the target's more sophisticated online systems, fortuitous. Post-lockdown, the retailer has managed to hang on to the boost given to its website business, which accounted for a third of group sales during its first quarter and pushed the overall figure ahead of analysts' expectations. The deal has been credited with a smoother launch of click-and-collect.Stripping out online sales shows that store revenue was 15 per cent higher in the first quarter than in the same period of 2019. There's likely an element of pent-up spending by people that had built up their savings during the pandemic.A boom in sales over the past 18 months has helped to almost double the FTSE 250 group's shares in the past two years. Priced at about 18 times forecast earnings for this year, Dunelm is more highly valued than peers that are still struggling to take proper advantage of the shift by customers to online. But a descent in its market valuation from an earnings multiple that touched 35 in September last year acknowledges that the easy gains made during the pandemic might not last.Underlying revenue growth is expected to ease - analysts expect a rate of 9.5 per cent this year, falling to between 5 per cent and 6 per cent in 2023 and 2024. Then again, that level of top-line growth trumps what's expected of Marks & Spencer, DFS or even Kingfisher and is more akin to Next, lauded as one of the few high street names to make "omni-channel retail" look like more than industry jargon.What Dunelm can boast is an efficient use of its capital and low rent costs that have come with occupying out-of-town retail parks. That has made the business highly cash-generative - last year cash from its operations was equivalent to 143 per cent of after-tax profits. Resisting the urge to splurge on fancy locations and store fitouts means that pre-tax profits are forecast to rise faster annually than revenue over the next three years.That bodes well for shareholder returns and Dunelm has a habit of paying special dividends. Last year's payment, including a 65p special return, totalled 100p. Higher capital expenditure means that the special payment is expected to be lower this year, with analysts at Berenberg predicting a total dividend of 74p a share. If that's right, it would leave the shares offering a potential dividend yield of 5.7 per cent at the present £12.98 share price, while satisfying a reassuring target dividend coverage ratio of between 1.75 and 2.25 times by earnings.The supply chain problems and cost inflation pressures playing havoc with retail margins are a natural risk, but clogged-up ports and driver shortages haven't hit the group's ranges yet. Stocking less seasonal products means delays to deliveries might sting less than for, say, fashion retailers, which operate by season.What might propel Dunelm's shares further? Sight of it achieving a 2017 target to boost sales to £2 billion might be one. Evidence that it can raise the proportion of online sales is another.The market was nonplussed at Dunelm's forecast-beating first-quarter figures - a high earnings multiple can have that effect - but there's at least more substance to Dunelm's business than some of the puffed-up "pandemic winners".Advice HoldWhy A higher earnings multiple than some other peers is justified by superior cash generation and a better dividend

[tole] 15/10/2021 13:54

Was off the citywire link this morninghttps://citywire.co.uk/funds-insider/news/expert-view-hargreaves-lansdown-senior-rathbones-domino-s-and-dunelm/a1568972?re=90064&ea=59818&utm_source=BulkEmail_FundsInsider+DawnChorus&utm_medium=BulkEmail_FundsInsider+DawnChorus&utm_campaign=BulkEmail_FundsInsider+DawnChorus#i=6

[gswredland] 15/10/2021 13:29

The market is just not rewarding good results atm.
I wouldn't be suprised to see these go back below 1200 again

[bartyb] 15/10/2021 12:25

Tole is that not an old peel hunt report

[bartyb] 15/10/2021 09:55

Price is ridiculously low. The market just does not like Dunelm. Our market always has could do better attitude instead of well done

[tole] 15/10/2021 06:14

Dunelm can continue to outperform, says Peel HuntHomeware retailer Dunelm (DNLM) has delivered another strong quarterly update and Peel Hunt says it will continue to outperform.Analyst John Stevenson retained his 'buy' recommendation and target price of £17.50 on the stock, which slipped 0.2%, or 2p, on Thursday to close at £12.98.The group reported 8.3% sales growth in its first-quarter update, covering late June to late September, and Stevenson said it was 'well placed to keep outperforming'.'Dunelm's focus on the core offer and the customer is yielding very positive results, with growth in active customers, market share, and a clear opportunity to drive greater share of wallet and frequency,' he said.'Dunelm is trading on 18x price-to-earnings ratio, on our forecasts, a discount to structural growth peers such as Pets at Home (PETS) and JD Sports (JD).'

[bartyb] 14/10/2021 15:34

As I said trading is good and they wil offset the fuel squeeze on margins with price rises.The consumers will still buy.All I hear from friend wives is" I love Dunelm"

[wetdream] 13/10/2021 15:31

BOT buying suggests positive update.

[bartyb] 13/10/2021 09:47

They are really busy. Got obvious increased costs on freight so prices will have to rise. Customers will still buy as the value will still be the best in the market.

[tole] 12/10/2021 12:15

https://citywire.co.uk/funds-insider/news/expert-view-sse-asos-dunelm-currys-and-volution/Berenberg initiates on 'structural winner' DunelmBerenberg has initiated coverage on Dunelm (DNLM), which the broker says is the standout performer in UK homeware retail, with recent share price weakness offering an 'attractive' entry point.Analyst Thomas Davies initiated coverage with a 'buy' recommendation and target price of £16.20 on the stock. The shares closed down 1.3%, or 17p, at £12.52 on Monday, extending a slide over the last month.'We expect Dunelm to continue its market share consolidation, outperforming the market – with its well-invested omnichannel proposition providing a competitive advantage over its digital peers,' said Davies.The analyst said the stock offered 'one of the [strongest] return on invested capital profiles in European retail' and its cash-generative business 'should support additional capital returns'.'We believe that the recent downturn in the share price has provided an attractive entry point into a structural winner,' he added.

[gswredland] 11/10/2021 11:17

Thanks Barty.
I had that info from IG so good to get that information from another source
If I can pick these up at 1200 I'd be pleased.

[wynmck] 11/10/2021 11:15

that was Berenberg initiating a BUY with 1620 tgt today

[bartyb] 11/10/2021 10:20

Trading update on Thursday 14th

[bartyb] 11/10/2021 09:57

Berenberg Target now 1620

[jltaylor1001] 08/10/2021 08:49

Looks to be back in bargain territory. Don't get the slide after results

[1madasafish] 16/9/2021 12:32

Big_Cat yes thats correct

[big_cat] 16/9/2021 11:36

Isn't it the case that the dividend cut-off was this morning before market opened?

[bartyb] 16/9/2021 08:25

Yes very solid , sales increasing all the time, just not one of the glamour stocks.

[1madasafish] 16/9/2021 08:15

Special Divi 65p and down 72p :(

Plus the 2% drop yesterday. Maybe a good time to get in

[idiotsinthe darkrizandlintard] 15/9/2021 15:27

This is what worries me - It should have gone up today into the divi. Obviously there is an expectation that there will be a sell off after divi.

I have another stock that in a few weeks time gives out a BIG Divi - actually it is a special dividend equivalent to 36%!

If this goes ex really bad I think I will unload that before the ex date although I accept that you cannot extrapolate.

Anyway - GL all for tomorrow.

[1madasafish] 15/9/2021 14:37

IDIOTSinthedark I agree with you.

If this wasn't going to drop by at least the 4 odd % special divi then why are people selling today ? It happened to RIO a few weeks ago.
However I can only read good news about Dunelm. Huge market which they only have a small market share of albeit a profitable one.

[sarahbudd] 15/9/2021 13:59

Maybe.. certainly surprised at drop today