Dunelm today bounced back from a dire first-half and poor Easter to post a leap in sales, which sent shares soaring.
The stock rose 4.5% to 624p as the homewares retailer notched up a 3.8% increase in same-store sales in the final quarter.
Its admission in February that first-half profits had slumped because of supply problems and a “weaker market” had sent shares diving.
Boss John Browett shrugged off the weak Easter performance, with sales 7% off last year, claiming the holiday was “not as bad as it could have been” and blamed good weather for diverting shoppers from its stores.
The retailer’s annual sales rose 8.5% to £955.6 million in the year to July 1 and it expects pre-tax profits to be around £110 million.
Browett said the company remains in expansion mode after the £8.5 million takeover of Kiddicare owner Worldstores in November last year, with plans to merge its websites under the Dunelm name.
Costs relating to the deal will be £17 million this year, and £7 million next.
The retailer has set a target to have 200 stores — up from its present 163 — and being “a 20-minute drive from everyone’s home”.
