Dunelm has reported positive Q3 trading today. LFL growth of 4.6% included 1.2% in-store and 35.7% online. While this included a small Easter timing gain (of c0.5%), this performance is considerably better than the market had feared/been pricing in. The group’s store/service strategy and step-change in online capability means strong share gains are being made as it further distances itself from the discounters and independents in what remains a highly fragmented market. As expected margin was slightly down and guidance for an uplift in Q4 (and H2 overall) remains intact, with prior end-of-season now mostly dealt with and spr/sum 18 seasonal stock under control. As a result expectations for the full year are unchanged versus expectations that were previously downgraded by c4% at the interims 8 weeks ago.
