Britain’s Dunelm sets special dividend as online sales surge

A view shows a Dunelm store in St Albans, Britain October 15, 2020. REUTERS/Peter Cziborra/File Photo

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Sep 8 (Reuters) – Dunelm Group (DNLM.L) declared a special dividend on Wednesday and said it expects full-year 2022 profits to be slightly above analysts’ forecasts, the British retailer of home furnishings that experienced rapid growth in online sales.

The company has benefited from an increase in demand for its products such as curtains, bedding and other decorative items as people redo their homes during the pandemic shutdowns.

Shares in Dunelm rose 7% on the London Stock Exchange, at 07:06 GMT, outperforming a 0.6% drop in the broad mid-cap index (.FTMC).

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“While the macroeconomic outlook remains uncertain and we see industry-wide issues such as continued supply chain disruption and inflationary pressures from raw materials, freight costs and driver shortages , we feel well positioned to continue to manage these challenges,” said the CEO. Officer Nick Wilkinson said.

Digital sales, which more than doubled year-over-year, contributed 46% of total revenue for the year ended June 26, up from 27% last year, Dunelm said.

Pre-tax profit for the 2021 financial year jumped 45% to 157.8 million pounds ($217.23 million), while sales soared 26% to 1.34 billion pounds.

Analysts on average expect profit before tax in the financial year 2022 to be between 153 million and 175 million pounds, according to Dunelm.

The company, which paid no dividends in 2020, has set a special dividend of 65p per share in addition to the annual dividend of 35p for the financial year 2021.

($1 = 0.7264 pounds)

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Reporting by Chris Peters in Bengaluru, editing by Sherry Jacob-Phillips

Our standards: The Thomson Reuters Trust Principles.


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David A. Albanese