- Issued shares dilute EPS
- Full-year profits expected to meet forecasts
The market evidently expected more of Dunelm (DNLM), as its share price dipped slightly in early trading despite the homeware retailer posting a bump in revenue and pre-tax profit for the last six months of 2023. A drop in reported earnings per share (EPS) was largely triggered by a change in corporation tax, and management would probably point to a 4.2 per cent hike in the number of active customers as a more telling metric, together with the overall rise in volumes. There was also a 160 basis point increase in the gross margin – a solid outcome given the challenge of efficient cost pass-through, and ongoing supply chain challenges. The company put the improved trading partly down to a good Christmas, and said it is on track to hit the market consensus of full-year pre-tax profit of around £202mn.