Dunelm shares soar on trading update

Shares in Dunelm (LON:DNLM) soared on Thursday as the home furnishings retailer issued a positive trading update.

The company, which employs roughly 10,000 people, saw its shares rise almost 19% on Thursday.

Dunelm confirmed on Thursday that it has successfully transitioned all of its customers to its new digital platform.

“We now have a modern, flexible, cloud-native platform that will be used to accelerate the development of our customer proposition,” Dunelm announced.

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The company said that customers have “responded well” to the new website.

During the transition period, Dunelm did not see any unfavourable impact to its performance. Indeed, it was able to maintain a “strong” sales growth both online and in stores.

The home furnishings retailer added that gross margins were stronger than expected.

It now expects full year profit before tax to be above what was previously expected, if there is no change to consumer demand following the general election.

“Gross margins have been stronger than expected as a result of sourcing gains and better sell through. Operational costs remain well controlled and in line with our expectations,” Dunelm said on Thursday. 

“In light of the above, the Board now anticipates that the full year profit before tax will be higher than our previous expectations, assuming no significant change in consumer demand as a result of the outcome of the general election,” Dunelm concluded in its trading update.

With just a week to go until the general election, parties continue to campaign to win over voters.

Shares in Dunelm Group plc (LON:DNLM) were up on Thursday, trading at +18.17% as of 12:02 GMT.