Investors will be hoping for news of a strong start from new spring lines, continued market share gains and growth in active customers when Dunelm (DNLM) delivers its third quarter update on 18 April.

The leader in a fragmented UK homewares market, Dunelm will provide a read on the health of the UK consumer and the margin outlook amid Red Sea disruption and promotional market conditions.

The company will also update analysts on whether it is on track to deliver full-year 2024 pre-tax profits within the £199 million to £207 million consensus range.

On 14 February, the curtain, quilt and kitchenware seller’s resilient first-half results revealed a 4.5% revenue uptick to £872.5 million and a 4.8% rise in pre-tax profit to £123 million, underpinned by share gains in homewares and furniture.

Edison analyst Russell Pointon said the performance demonstrated the benefits of Dunelm’s strategy of broadening its addressable market by ‘strengthening the core offer and expanding into newer categories, while also growing the store base and marketing more effectively. This is driving growth in active customers, who shop with greater frequency, leading to further market share gains in a static market.’

Led by digitally-savvy chief executive Nick Wilkinson, Dunelm upped the ordinary dividend and declared a special dividend on top, demonstrating some confidence in the ongoing resilience of its customers. The FTSE 250 retailer said it was ‘pleased’ with trading in the second half so far, although it cautioned the consumer outlook ‘remains uncertain’. 

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