Dunelm bucks trend, raising annual profit forecast again

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// Dunelm raises full year profit forecast once again
// Warm weather resulted in boost for total like-for-like sales in May and June
// Shares rise 5% in early trading

Dunelm has defied the wider retail market this morning by raising its full-year profit forecast for the second time in just over two months.

The home furnishings and lifestyle retailer which largely operates through out of town retail parks and superstores, issued a trading update to say total like-for-like sales were up in May and June thanks to warm weather.

In April Dunelm said it was on track to top analyst forecasts for profit this year of between £116 million and £119 million, after higher-than-expected sales due to an increase in online orders as well as higher sales from stores.

On Thursday Dunelm said it expected pretax profit in the range of £124 million and £126 million.

In 2018, Dunelm reported an underlying pretax profit of £102 million.

While its results may contradict wider trading patterns on the high street, they’re not without reason.

Dunelm has benefited from a shift in strategy from chief executive Nick Wilkinson, who took over in later 2017.

Since then the retailer closed its underperforming Worldstores and Kiddicare websites and instead invested in its core digital offering.

Shares rose 5 per cent in early trading, up more than 75 per cent year-on-year.

Dunelm added it would provide full details of its final quarter results and year-end update on July 10.

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