Dunelm trading well ahead of expectations

In an unscheduled trading update the homewares retailer said total sales surged 59% in July from a year earlier partly from pent-up demand from store closures and the timing of its summer sale. Sales rose 24% in August.

"This performance reflects the strength of our proposition within a resilient homewares market, positive footfall growth to our mainly out-of-town superstores and continued strong growth in our home delivery offer," the FTSE 250 company said.

Dunelm said there was too much uncertainty about the economy and the potential impact of renewed lockdowns to give meaningful guidance on the outlook.

"However, we remain confident in our ability to adapt to the environment and are well positioned to continue to grow market share," Dunelm said.

Dunelm shares rose 2.9% to £14.70 at 10:13 BST. The company said it would give a more detailed update with its results for the year to the end of June on 10 September.

The company said in July that annual profit would fall because of store closures during the coronavirus lockdown. It returned to profit in June after recording losses in April and May.

Clive Black, an analyst at Shore Capital, said: "Dunelm is a very good retailer, with generally well located retail park stores and high standards," Black said. "To us, Dunelm will be, along with the likes of DFS, Next, Marks & Spencer, Primark and ScS, a survivor post the trauma for the industry posed by coronavirus."