Home furnishing retailer Dunelm's share price was down 4.37 per cent this morning after the company said hot weather hit sales.
In its first quarter trading update, Dunelm reported total revenue fell by 1.8 per cent to £198.7m. Total like-for-like sales were down by 3.8 per cent.
As expected, unusually warm weather had a dampening effect on store footfall. We did, however, continue to see good growth in the online business.
Cantor Fitzgerald analysts said they had been expecting "disappointing figures".
"We are still disappointed that the company has not resumed their strategy of share buybacks and the 'knee jerk' this morning is for market makers to mark the shares down," they said.
Cantor kept a "buy" rating for the company, however, due to its management, strategy and brand. But the analysts downgraded Dunelm's target price from 1000p to 950p, which was the company's share price before the Brexit vote. Its shares are currently around 820p.
Retail analyst Nick Bubb said Dunelm's results paint a "gloomy picture of recent trading in the furnishings market".
Dunelm's fortunes contrast with its competitor in the home furnishing market, DFS, which also had results out today. DFS reported a seven per cent increase in sales and upped its dividend by 21 per cent.