Strong morning trading sees Dunelm share price rise

Dunelm’s share price rose by more than 12% on Wednesday (September 8) on the back of strong full-year results.

By 1.30pm on Wednesday afternoon, the Leicester retail giant’s shares were changing hands for £14.43 each – a rise of just over 12% from their opening price.

On Wednesday morning, Dunelm reported a profits rise of almost 45% over the last 12 months and said it is becoming “the first choice for home”.

Profits before tax at the listed giant soared to £157.8m for the year to June 26, while revenues rose by over 26% to £1.34bn.

Dunelm increased its share of UK homewares market by 1.6% percentage points to 9.1% during the period.

Walid Koudmani, market analyst at financial brokerage XTB, said: “Dunelm’s financial results proved to be surprisingly positive, indicating the continuing growth of the company along with significant market share gain (rising from 1.6% to 9.1%) These are strong indications of positive potential for the company considering stores were closed for a good part of the financial year and the general economic situation of the UK.

“The company will have to continue innovating and expanding its offerings in order to stimulate sales growth moving forward as competitors attempt to regain lost territory. Positive performance has also reflected in an increase in dividends which could further boost investor confidence in the company moving into the final quarter of the year.”