Weak first-half results sent shares in homeware retailer Dunelm south today despite its boss’s assurances that the company was facing only short-term pain.
Dunelm reported a 1.6% drop in same-store sales the six months to December 31, while pre-tax profits fell 11.3% to £55.9 million.
It hiked the interim dividend 8.3% to 6.5p but the shares hit their lowest since 2013 before recovering to 634.5p, down 50p, or more than 7%, on the day.
The retailer’s chief executive John Browett blamed unusually warm weather, a weaker market and supply disruption caused by the opening of a new depot. He brushed off consumer confidence concerns as sales of big-ticket items held up.
Browett declined to comment on current trading but said he expected performance to pick up, especially after the recent £8.5 million acquisition of online firm Worldstores.
“We have to take short-term pain. We think there’s a lot more to come and expect to be on a more normal footing next year.”
He added that sterling’s weakness has forced it to raise prices for the first time in five years.
