Chief Executive John Browett is leaving the company, citing "personal reasons".
Companies: Dunelm Group plc
A surprise RNS from has been released by Dunelm this morning, with the Company announcing the departure of CEO John Browett after 2 years at the helm.
The statement also said the next phase of growth for the Group requires "different leadership". Chairman Andy Harrison will step in as interim boss whilst a new chief executive is found.
Singers released a note off the back of the news, saying "some shareholders might react negatively" to the management change. They also went on to say:
The infrastructure/ strategic growth initiatives are embedded now and Dunelm has “ambitious and profitable growth plans” making forward growth over the next 3 years (>10% EPS CAGR) appealing."
Much like the rest of the retail industry, Dunelm has suffered under difficult market conditions, having achieved nil EPS CAGR during Mr. Browett's tenure.
Shares are currently down around 3% in early trading after the announcement.
Management went on to say that trading in its new financial year which began in July had “started positively, with an encouraging like-for-like sales performance”. The group will release their interims two weeks from today.
Dunelm currently trades at a PE ratio of 12x with a 4.5% yield against the industry median of 14x. Share prices have fallen considerably since their peak in January 2016, losing 40% of their value to be trading around 580p today.
Despite this, revenue growth and operating margins have risen steadily, both hovering around 10% CAGR, with consensus predicting this average growth to continue into 2018 and beyond.
