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Dunelm - Excellent Q1 update

November 2017

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • DNLM
  • Price:
  • 750p
Shares in Dunelm rocketed after its Q1 update reported good progress seen in the previous quarter had continued (see August update). Overall Q1 sales went up 9.3% for Dunelm or +24.8% including Worldstores, a clear improvement sequentially.The integration of Worldstores continues on plan and its losses are coming down, lifting overall profitability. Dunelm said it is becoming a genuine multi-channel retailer, with 16% of sales from online. Management is aiming that in the medium term it can grow its sales to £2bn and 30-40% will be online. Meanwhile, it continues to open new stores with five more added this period, taking the count to 165 stores with another five set to open before Christmas as it grows its presence in London ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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