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Dunelm jumps on profit upgrade

Margin improvements have put investors fears to rest
December 5, 2019

Analysts have upgraded full-year pre-tax profit expectations for Dunelm (DNLM) 5 per cent following the homewares retailer’s latest trading update.

IC TIP: Buy at 988p

The shares jumped as much as 19 per cent following the announcement, which in part reflected investors’ relief after the group announced “mixed” trading heading into the key Christmas trading period.

Dunelm’s shares have recently been prone to big swings following announcements, given uncertainties about its ability to implement a recovery strategy against a challenging trading backdrop. News from the company in October that trading had been mixed was enough to prompt a double-digit share price fall.