But fears September trading may be weak
BY TRICIA PHILLIPS TOTAL sales at homewares store Dunelm increased 7.5 per cent in the three months to September – after new store openings and online growth boosted its turnover.
But shares in the company sank yesterday after it warned that trading in September was “mixed” due to a “softer” homewares market.
Dunelm saw like-for-like sales, which only include stores open for at least a year, increase 6.4 per cent to £255.6million.
Its profit margin improved too, which the firm said was due to stores carrying less clearance items than the year before and gains made in product sourcing.
Dunelm reported a jump in online sales and said the launch of a new digital platform would be an “important milestone” in the firm’s development.
Chief executive Nick Wilkinson said: Sales ‘soft’ in September MORE than a third of parents claim single be better off on they would employment, in benefits than lender by online says research a Just less than Fairmoney.com. prospect of Britain third say the has left them leaving the EU able to they won’t be worried family support their financially. “We are pleased with our performance in the first quarter, building on the strong growth delivered over the last year. “Our customers continue to respond well to our specialist product and service offerings and we are excited by the numerous opportunities ahead of us.” Nicholas Hyett, an equity analyst at investment firm Hargreaves Lansdown, said: “What’s most interesting about this strong set of numbers is that most retailers are struggling to get like-for-like sales but Dunelm is doing that quite nicely. “Not only growing sales but at better profit margins.” So why the negative reaction from investors which sent Dunelm’s shares lower? Hyett added: “It may seem odd but September trading sounds like a bit of a switch. People are genuinely worried that consumers are being a bit more cautious. A September weakness may see Dunelm struggle to keep achieving this success.” THE taxman estimates pension tax relief will cost £21.2billion this year, plus £18.7billion relief on employer and employee national insurance. Retirement specialists Just Group say it’s unfortunate it’s described as a “cost” – that suggests it’s a burden on taxpayers, when pensions are about providing a sustainable income for those no longer working. The alternative would be a heavier burden on the state to provide for those without adequate income.