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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Dunelm

July 2018

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • DNLM
  • Price:
  • 562p
While cold, wet weather is the usual excuse for most retailers, the problem for a homewares business like Dunelm is that when the sun shines for too long, it keeps the shoppers away. Dunelm has therefore said “as a result of reduced footfall to its stores like-for-like store sales fell 4.7% in Q4, although a stronger than expected online performance (sales +43.7%) meant overall like-for-like sales only fell 0.1%. The other drag is from the recently acquired businesses of Worldstores, which are still loss-making.Dunelm has therefore guided pretax profit at around £109m for the year to June ’18 (eps: 42.5p). It’s not commented on FY’19 – broker, Stifel has a stab forecasting eps of 45.3p - but assu ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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