Dunelm Defies the Downturn

The Week: Morningstar columnist Rodney Hobson marvels at Dunelm's retail resilience, notes Dixon Carphone's new upbeat message and the muddle at Royal Mail

Rodney Hobson 11 September, 2020 | 9:21AM

The Week

What is it about Dunelm (DNLM) that it defies the downturn in retailing and makes light of the coronavirus lockdown? I bought into the shares far too late, having refused for months to believe that its success could continue, but I am still well ahead, having paid 853p a share against a current price of 1,340p.

Sales in the 52 weeks to June 27 were down a mere 3.9% despite including the period in which stores were closed. Pre-tax profits for the year were 13.3% lower. Not many retailers did anything like as well as that and Dunelm can thank a doubling of online sales for mitigating the lockdown damage.

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About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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