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Dunelm Group's (DNLM) Buy Rating Reaffirmed at Shore Capital Group
The homeware retailer plans £100 million in cost cuts and annual savings of about £40 million as it invests in new stores and automation.
- Dunelm unveiled a three-year growth strategy to strip around £100 million of "unproductive" costs while planning to open up to 10 new stores annually, aiming to simplify operations and boost efficiency.
- Unusually hot weather since June dampened trading, while the retailer faces "challenging" conditions including elevated interest rates and inflation, and a changing UK political landscape affecting consumer spending patterns.
- The firm reported annual sales of £1.83 billion, up 3.1 per cent, though pre-tax profit remained flat at £211 million; Dunelm removed around 8 per cent of "central roles" in recent months to simplify operations.
- Investors appeared underwhelmed, with shares falling about 12 per cent by lunchtime, though Richard Hunter of Interactive Investor said the plan aims to "capitalise on the group's obvious underlying strengths."
- Chief Executive Clo Moriarty aims to evolve the business through artificial intelligence and RFID chips to improve stock accuracy, while targeting around 100 potential locations for new stores over the next three years.
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Dunelm plans to cut £100m of ‘unproductive’ costs in three-year strategy
The homeware retailer said it had already cut down its central teams by around 8%.
·London, United Kingdom
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Heatwaves wilt Dunelm sales as new boss eyes turnaround
The new boss of Dunelm has warned that record summer temperatures have posed an early hurdle to her attempts to turn around the furniture seller. Clo Moriarty, who joined the group from Sainsbury’s in October last year, said progress towards her new strategy has so far been delayed by the repeated heatwaves which have driven [...]
·London, United Kingdom
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Total News Sources15
Leaning Left3Leaning Right2Center3Last UpdatedBias Distribution38% Left, 37% Center
Bias Distribution
- 38% of the sources lean Left, 37% of the sources are Center
38% Left
L 38%
C 37%
R 25%
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