In key news on UK stocks, Dunelm Group (GB:DNLM) shares soared after the company recorded a strong performance in its final quarter. Additionally, the company is optimistic about its full-year outlook for FY24 and expects pre-tax profits to slightly exceed the compiled consensus of £200 million. It also projects its full-year gross margin to increase by 170 basis points, driven by favourable net freight conditions.
Following the update, Dunelm shares have gained over 8% as of writing.
Dunelm Group is a British retailer specializing in home furnishings. It offers a wide range of products through both digital platforms and in-store shopping.
More from Dunelm’s Recent Trading Update
Dunelm posted total sales of £1.7 billion for the full year, marking a growth of 4% over FY23. In Q4 Fiscal 2024, the total sales grew by 5% year-over-year to £399 million. The company highlighted that its top-line growth was mainly due to its improved volumes, while it focused on providing value and choices to its customers. Dunelm Q4 performance was also supported by its summer sale period in June, with positive responses to its offers and new products.
The company’s Dunelm’s digital sales accounted for 40% of its Q4 total sales and 37% of the full-year topline. The company will continue to invest in its digital channels to improve its market share.
Looking ahead to Fiscal 2025, Dunelm is confident in its smaller format stores and new quality locations. It also remains cautious about rising wage inflation and stated the need to maintain its operational efficiency amid market uncertainty.
Dunelm will announce its preliminary results for FY24 on September 11, 2024.
Is Dunelm a Good Stock to Buy?
On TipRanks, DNLM stock has received a Moderate Buy rating based on three Buy and three Hold recommendations. The Dunelm Group share price forecast is 1,211.67p, which implies a modest upside of 2.21% at the current price level.
Year-to-date, Dunelm shares have gained over 9% in trading.
