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Dunelm slides on "mixed trading"

The furniture retailer saw like-for-likes grow in-store and online, but trading stumbled in September
October 11, 2019

Shares in Dunelm (DNLM) recorded a double-digit fall after the group’s latest trading update warned of “mixed” trading in September. The furniture retailer achieved like-for-like sales growth of 6.4 per cent in the 13 weeks to the end of September, but investors took fright at the prospect of markets weakening as it enters its peak winter trading period.

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The outsized share price reaction was triggered by the prospect of a softening market, unsurprising given that UK consumer credit is at a five-year low. Analysts at Broker Peel Hunt noted the cooler weather in October may well be driving improved performance, but even though the home furnishing retailer performed creditably through to September, any spending on its product range certainly falls under the 'discretionary' label.