Despite posting "record" sales of £1.64bn in its preliminary results yesterday, Dunelm failed to assuage shareholders, with shares slipping over three per cent on the back of lower profits. The furnishings provider said profit before tax slid 7.8 per cent to £192m, with the group blaming a tightening on operational controls and the impact of cost inflation for the dip. The Leicester-born business said it expects to see sales and profit growth in the full year and noted a cool down in freight costs, which it said would support its margins going forward. Dunelm, which has 172 stores across the UK, also said that the number of customers it attracted grew 2.8 per cent as its decision to pass on cost reductions on over 1,000 products bode well with shoppers under the cosh.

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