JOHN STEVENSON | PEEL HUNT
Yesterday’s update was quite good and stronger than I was looking for. Looking forward, given that they have a new advertising campaign coupled with the fact that their online business is relatively nascent and they could benefit from the economic housing recovery, they could actually be a winner this year.
FREDDIE GEORGE | CANTOR FITZGERALD
Following this update, we are raising our pre-tax profit forecast to £117m from £116m. The company should benefit from a recovery in both the housing market and consumer confidence. In our view, Dunelm has a great opportunity to improve gross margins by growing its own label and the amount of directly sourced products.