Dunelm shareholders have had a roller-coaster ride since Covid first shut its 177 stores almost three years ago.
Having climbed back from a pandemic-induced slump, the furniture retailer’s value plunged again last February when Vladimir Putin invaded Ukraine. Investors took flight over fears that spiralling inflation would see consumers cut back on big purchases such as new sofas and tables.
But in the past six months, shares have climbed 37 per cent after a bumper Christmas trading update and amid growing signs that people are still spending despite the cost of living squeeze. Dunelm has also been buoyed by booming sales of the firm’s £14 indoor heater, which has made headlines for helping householders to keep warm on a budget.
Bosses will be hoping that Dunelm’s results on Wednesday – for the six months to the end of December – give investors more to cheer about. Analysts will be keen to know how much the firm’s own soaring costs are eating into its bottom line.
Hargreaves Lansdown analyst Susannah Streeter said: ‘Dunelm has shown hardiness amid the cost of living headwinds. Its product range proved to be the right mix as customers navigated the cost of living crisis and the cold snap, with its winter warm range of goods proving appealing.’
Dunelm shares yesterday closed down 2.6 per cent, or 31p, at 1155p – around a quarter below highs hit during a home improvement boom between strict Covid lockdowns.
