Earnings Alerts

Dunelm (DNLM) Earnings: 1H Pretax Profit Falls Short of Estimates Despite Strong Business Resilience

By February 11, 2025 No Comments
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  • Dunelm‘s pretax profit for the first half of 2025 was GBP 123.2 million, which missed the estimate of GBP 126.5 million.
  • Operating profit came in at GBP 128.6 million, slightly below the anticipated GBP 136 million.
  • The gross margin stood at 52.8%, meeting the forecasted figure.
  • Net income was reported at GBP 91.6 million, missing the estimate of GBP 94.8 million.
  • The company declared an interim dividend per share of 16.5 pence.
  • Free cash flow for the period was a robust GBP 168.5 million.
  • Analysts’ expectations for full-year pretax profit are averaged at GBP 209 million, with a range from GBP 204 million to GBP 214 million.
  • The company states that full-year profit before tax expectations remain unchanged and are in line with consensus.
  • Dunelm attributes its first-half performance to the growing appeal of its offering and the strength and resilience of its business model.
  • Analyst recommendations include 8 buy ratings, 2 hold ratings, and 1 sell rating.

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A look at Dunelm Smart Scores

FactorScoreMagnitude
Value2
Dividend5
Growth3
Resilience2
Momentum3
OVERALL SMART SCORE3.0

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Looking at the Smartkarma Smart Scores for Dunelm Group Plc., the company appears to have a solid outlook in certain areas. With a top score of 5 in the Dividend category, Dunelm demonstrates strength in providing returns to its shareholders through dividends. This indicates a good track record of rewarding investors through regular and possibly increasing dividend payments.

However, the overall long-term outlook for Dunelm is somewhat mixed based on its other scores. While scoring moderately in areas like Growth and Momentum with scores of 3, indicating some positive potential, the company falls a bit short in the Value and Resilience categories with scores of 2. This suggests that Dunelm may face challenges in terms of the value of its stock compared to its financials and the ability to weather economic uncertainties. Investors may want to keep an eye on how the company navigates these aspects moving forward.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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