Dunelm left in a heap by softer demand
A MARCH chill for Dunelm in the face of some uncertain trading patterns today sent the homewares retailer to the bottom of the FTSE 250 index.
The shares fell 5% or 50p to 1024p as Dunelm said softer levels of demand in the run-up to Easter left sales 3% higher at £435 million in the quarter to 30 March.
Dunelm called it a resilient result, adding that it continued to grow market share at a time when consumers have been more cautious about their spending.
Broker Peel Hunt trimmed its 2024 profit estimate by £4 million to £197 million but kept its price target at 1375p as Dunelm looks well positioned for when conditions recover.
Hargreaves Lansdown analyst Sophie Lund-Yates added: “While Dunelm is one of the strongest names in the sector, and the most nimble, this corner of retail faces an uphill battle for now.”
Dunelm was joined on the FTSE 250 fallers board by Royal Mail owner IDS, down 14.2p to 262.3p after yesterday’s surge on details of the 320p-a-share takeover approach by Daniel Kretinsky’s EP Group.
Overall, the FTSE 250 added 88.51 points to 19,428.65 in a session of calmer trading after the interest rate jitters earlier in the week.
The FTSE 100 index improved 0.5% or 36.53 points to 7,884.52, with lenders NatWest and Lloyds Banking Group among those offering support.
National Grid rose 19p to 1032p after upgrading earnings guidance but Rentokil Initial remained under pressure despite reporting it has stabilised its performance in North America. Shares in the pest control and hygiene services firm fell 12.2p to 434.7p, leaving them more than 25% lower over the past year.
In other updates, Deliveroo shares jumped 6% or 7.8p to 129p after reporting a return to order growth in the first quarter.