Dunelm Share Discussion Threads

[kendonagasaki] 05/1/2023 20:41

Monday Morning is going to hurt!Quite a lot, not just for Dunelm but the markets in general.Do not get caught out?

[chubb24] 05/1/2023 10:03

Hi, you are mis-reading the disclosure. JP Morgan Asset Management have the stake, the disclosure was most likely made by their team in India (there is a lot of off shoring at the banks). Still good for them to build this position.

[chessman2] 05/1/2023 09:46

It could also be due to an Indian supplier building a stake.

The dividend is good, turnover is good thus 2023 will be a good year for Dunelm

[site manager] 05/1/2023 09:39

Tipped in the Sunday Times as one of their shares for 2023. Although the rise we are getting atm must be due to general sentiment to retailers returning.

[bartyb] 20/12/2022 09:05

That lastRNS looks like JP Morgan taken a position of over 5% for an Indian company.

[bartyb] 09/12/2022 08:36

I know sales are really good. They have been and continue to be good. If house sales retreat somewhat people will improve what they have.

[chessman2] 08/12/2022 18:56

Dunelm will continue to prosper as more shoppers will seek economical household goods!!

[kendonagasaki] 08/12/2022 18:32

Toffee we get an amazing opportunity to short this again.Pain is coming and Dunelm is going to be a big victim.Can't believe this amazing opportunity again.Markets begin to tank next week and this is going down all the way into May.The uk consumer is out of cash!

[chessman2] 07/12/2022 14:45

I visited my local store again at the weekend.

It was even more crowded than a month ago with another long queue at the checkout.

[cwa1] 10/11/2022 08:01

Ex a 26p dividend today. Pay day for which is 5/12

[chessman2] 09/11/2022 17:47

I expect DLNM to continue climbing.

I was in my local store in Kent today. There were 4 cashiers but I still had to queue with circa 20 others customers.

I was impressed so will continue holding!

[charlotte2020] 04/11/2022 23:33

Thanks Paul. Glad you are in profit. It's a really good business and highly cash generative. Good luck. I'll look for pillows over the weekend.

[paul280i] 04/11/2022 21:45

Sorry Charlotte only looked at lights
Well toffee nose, I’m already in profit

[charlotte2020] 04/11/2022 17:50

I was wanting to by some new pillows. Don't suppose you had a look in that section of the shop?

[toffeeman] 04/11/2022 17:41

I didn't buy today after visiting the Exeter store and was unimpressed with the range of stock, lack of staff and a very empty shop.

[paul280i] 04/11/2022 11:30

I bought today for the first time after visiting the Gloucester store and was impressed with the range of stock, helpfull staff and a very busy shop.

[cwa1] 20/10/2022 07:46

Highlights

· Robust trading performance in line with expectations, with Q1 sales -8% year on year, against a very strong comparative period, and 36% higher than the same period in FY20 (pre-pandemic)

· Continuing to offer customers outstanding value at all price points, whilst maintaining tight operational grip across the business

· FY23 guidance remains unchanged despite the challenging macroeconomic environment



Continued robust sales performance



We were pleased with our trading performance in Q1, in a challenging environment. Sales of £357m were down 8% year on year, as expected, given the very strong comparative period, with Q1 last year benefitting from pent up demand and our rescheduled Summer Sale. Compared to FY20 (pre-pandemic), total sales grew by 36%, in line with the 3YoY growth rates seen in the latter part of FY22. This performance demonstrates the strength of our business model against a challenging external backdrop, and we continue to be sharply focused on offering outstanding value to our customers.



Digital sales made up 33% of total sales in the quarter, in line with the same period last year, and we are continuing to see robust sales from our total retail system across our categories, including a very good response from customers to our seasonal ranges such as 'Winter Warm'.



Gross margin



As expected, gross margin was 130bps lower than last year, reflecting more normal patterns of customer behaviour. We are focused on maintaining tight operational grip and remain confident of delivering a full year gross margin of c.50%, in line with previous guidance.



Outlook

The macroeconomic environment remains challenging, and our primary focus is on continuing to offer outstanding value and choice to all our customers, across our broad range of homewares products. We have a strong business model; our focus on mitigating external headwinds whilst making decisions for the long-term is helping us to navigate the current inflationary challenges. Whilst exchange rate movements have been particularly volatile in recent weeks, we are very well hedged for the remainder of FY23. We are confident in the resilience of our business and our guidance for FY23 is unchanged from the Preliminary Results announcement last month.

[aishah] 04/10/2022 10:13

It's a class act. Read the recent update. Tells you all.

[site manager] 16/9/2022 16:25

Nice to see a 250K director buy today.

I was in my local branch yesterday as I`m getting a flat ready for short lets.
It was busy, I spoke to the staff who said they had been very busy.

The in store cafe also busy, I`ve no idea why people would choose to eat there, but they do.

Large basket sizes too, nobody seems to go in for just 1 thing.

I accept this all could just be local and sentiment is against retail for sure, but that is what gives us bargains. Good luck all; even Kendo - I have nothing against shorters.

[kalai1] 14/9/2022 14:14

Dunelm posted Prelims for the 53 weeks to 2nd July. Revenues were up 16% to £1,553.1m, PBT was up 32.4% to £209m, diluted EPS up 30.5% to 82.1p. Active customers grew by 8.5% over the year, with increases across all demographics. Sales have also remained robust in the first ten weeks of the new financial year, the business is on track to deliver FY23 results in line with analyst expectations, currently for PBT of around £178m or profit growth of about 13%. The company is high quality with top-notch profitability ratios, although net debt is a little high. Valuation is also relatively attractive following a halving of the share price over the past 12 months, dividend yield at over 6% is also very attractive. The macro environment is the main cloud, share price also remains in its correctio and lacks positive momentum for now. DNLM is a share to monitor for the time being, but will be well worth owning at some point in the next year or two...

...from WealthOracle

hxxps://wealthoracle.co.uk/detailed-result-full/DNLM/553

[yf23_1] 14/9/2022 08:43

I can't see how they can maintain gross margins of 50% in this environment going forward.

[roguetraderuk] 14/9/2022 08:21

good set of results for dnlm but hard to extrapolate for housing industry. are people buying kit for new homes or simply staying put and doing up current homes? but i digress. dnlm says trading in early days still strong but its hard to argue against some slowdown in its trading if economy continues to slow over winter. but on any sign of that and the pricing in of that youd then want to step in.

[aishah] 14/9/2022 08:11

Superb results! Quality outfit and very nimble. P/e < 10 for such a fantastic business. I've been adding recently. Dyor

[cwa1] 14/9/2022 07:32

Preliminary Results for the 53 weeks ended 2 July 2022



Record results, confident in a challenging environment


Highlights



· Strong sales growth of 16.2%6 with total sales 41% higher than FY19

· Homewares market share gain of +140bps and continued share gains in furniture7

· Active customers grew by 8.5%8 over the year, with increases across all demographics

· New ecommerce and furniture fulfilment operations opened in the year, giving capacity for growth and improved delivery options for customers

· Scope 1 carbon and plastic packaging reduction targets met and textiles take-back service introduced in stores nationwide

· Healthy gross margin of 51.2%6 including impact of the extra Summer Sale in the year

· PBT growth of 32.4%6, with a strong profit margin reflecting cost leverage and operational grip

· Free cash flow of £153.0m, representing 70% conversion of operating profit

· Final dividend of 26p (FY21: 23p) taking the full year ordinary dividend to 40p, an increase of 14.3%



Outlook and current trading



· Sales have remained robust in the first ten weeks of the financial year

· Proven strength of the Dunelm business model gives us confidence, despite an extremely challenging environment

· Our primary focus is to continue offering outstanding value to all our customers

· Expect to deliver c.50% gross margin for the full year and manage costs through efficiency improvements and operational grip

· On track to deliver FY23 results in line with analysts' expectations9



Nick Wilkinson, Chief Executive Officer, commented:



"Our colleagues and our committed supplier partners are at the heart of our success. In another year of excellent performance, I am extremely grateful for their skill, commitment and adaptability in the face of new external challenges and during another busy period of progress across the business.



"We feel confident and well prepared to weather the current economic pressures - we emerged from an unprecedented global pandemic as a bigger, better business and we believe we have the tools in place to do that again. That said, the operating and economic environment is extremely challenging.



"In this environment, we have to make every pound count, both for ourselves through our tight operational grip and cost discipline, and for our customers, through our offer of outstanding value at all price points.



"Dunelm, at its heart, offers customers great choice and value. Now is not the time for us to shy away from that, but for us to fully embrace it; whether it's our Winter Warm collection or our Student Essentials range, we think Dunelm's unique and market-leading offer is more relevant than ever before."