5th Dec 2019 08:35
(Alliance News) - Dunelm Group PLC on Thursday confirmed the "successful" transition of all of its customers to a new digital platform and said it now expects annual profit to beat its previous forecasts.
The stock was 13% higher in London in morning trade at 941.00 pence a share.
Dunelm said gross margins have been stronger than expected in the first half of its current financial year as a result of sourcing gains and better sell through.
Meanwhile, operational costs remain well controlled and in line with the company's expectations, it said.
The FTSE 250-listed homewares retailer said it now has a modern, flexible, cloud-native platform that will be used to accelerate the development of its customer proposition.
In addition, the company said its clients have responded well to the new website, resulting in no "adverse" impact to Dunelm's performance. The firm said it maintained "strong" sales growth both online and in stores.
As a result, Dunelm now anticipates that the pretax profit for the year to the end of June will be higher than its previous expectations.
For its financial year ended June 29, pretax profit jumped 35% to GBP125.9 million on a 4.8% rise in revenue to GBP1.10 billion.
By Evelina Grecenko; [email protected]
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