- Pretax profit reached GBP 211.0 million, marking a 2.7% increase year-over-year, precisely meeting estimates of GBP 210.3 million.
- Operating profit rose by 4.2% to GBP 222.0 million, slightly above the forecast of GBP 220.4 million.
- Gross margin improved to 52.4% from 51.8% the previous year, slightly above the estimate of 52.3%.
- Net income stood at GBP 156.3 million, reflecting a 3.4% increase compared to the same period last year. This was marginally below the estimate of GBP 157.3 million.
- Free cash flow declined by 3.6% to GBP 127.4 million, missing the estimate of GBP 130.9 million.
- The number of stores totaled 202, surpassing the estimate of 194.6.
- Inventory levels rose by 1.5% to GBP 226.3 million, below the projected GBP 232.2 million.
- The final dividend per share increased to 28p from 27.5p last year, though the projected dividend was significantly higher at 80p.
- Overall dividend per share for the year was 44.5p, up from 43.5p the previous year.
- The company expressed satisfaction with early trading in the new financial year but noted the absence of a sustained consumer recovery.
- Analysts’ stance on the company: 7 buy recommendations, 4 holds, and 0 sells.
A look at Dunelm Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
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
Based on the Smartkarma Smart Scores, Dunelm shows a promising long-term outlook. With a high Dividend score of 5, investors can expect strong returns in the form of dividends. Additionally, Dunelm scores well in terms of Momentum with a score of 4, indicating positive market sentiment and potential for future growth. Its Resilience and Growth scores of 3 each suggest a stable performance and moderate room for expansion in the market. However, the Value score of 2 indicates that the stock may not be undervalued, but overall, Dunelm‘s scores paint a favorable picture for its future prospects.
Dunelm Group Plc. is a UK-based company that specializes in retailing home furnishings. From textile products to household items like lighting products, pet supplies, and sewing machines, Dunelm offers a wide range of products to cater to customers’ needs for enhancing their living spaces. With a strong focus on dividends, positive momentum, and a resilient business model, Dunelm appears to be well-positioned for long-term success in the home furnishings retail sector.
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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