IOMINVESTCOM
21 Sep 2017
Jefferies: Dunelm targets are too ambitious Plans from homeware retailer Dunelm (DNLM) to double sales in the medium term are ‘overly ambitious’ given the economic environment, according to Jefferies.Analyst Caroline Gulliver retained her ‘underperform’ recommendation and target price of 515p on the shares, which fell 3p to 639p yesterday.‘Last week Dunelm raised its medium term sales ambition to £2 billion, double full-year 2017 sales,’ she said.‘We estimate that to do this within eight years would require a like-for-like of 7.5%, which we view as overly ambitious given the weak macro-environment and competitive pressure from Amazon and other retailers with a higher net promoter score [that measures customer loyalty] than Dunelm.’Gulliver added that her full-year 2018 and 2019 forecasts were 8-9% below consensus and ‘thus we retain an “underperform’’.[link]
IOMINVESTCOM
14 Sep 2017
Clarity on new boss will lift Dunelm shares, says Peel Hunt Clarity on leadership would provide a platform for Dunelm (DNLM) shares following chief executive John Browett’s shock departure last month, says Peel Hunt.Analyst John Stevenson retained his ‘hold’ recommendation and target price of 620p on the stock after final results showed profit before tax fell 15% year-on-year as expected. The drop was a function of expected Worldstore losses.The shares jumped 5% to 645.3p yesterday.‘There’s not much in the way of new information [in the results], no bad thing given the recent departure of the chief executive,’ said Stevenson.‘Trading on c.13x price/earnings ratio, clarity on leadership would provide a platform for the shares to build from.’He added that trading was ‘positive’ and ‘the outlook for the shares and the business should be much clearer from here’.[link] Sep 17 Peel Hunt Hold 0.00 620.00 620.00 Retains08 Sep 17 Deutsche Bank Hold 0.00 665.00 630.00 Retains30 Aug 17 Peel Hunt Hold 0.00 620.00 620.00 Reiterates
Chelios11
13 Sep 2017
Re: Spot on I agree with the consensus that Dunelm has got a lot of goodwill out there from a significant customer base. They may have had a few issues with management, bedding in new stores and assimilation of purchased organisations, but these are challenges many organisations have had to face. In the long run I am confident that Dunelm will thrive, personally I would like to see them consolidate what they have for a few years and not expand further.
jaymac3
13 Sep 2017
Re: Spot on Good comments at last coming now. There is a real buzz not only in the stores where we can go and see for ourselves as some posters have been doing recently but the admin has been well and truly shaken up as well.We should have realised something was happening when the late (but not lamented) CEO departed recently -but made further £10k share to swell his already significant holding in DNLM. Now why would he do that just before the announcement of his departure? He obviously knew the group was on the move as he was in a position to see the wood for the trees as one poster here described what perhaps he saw as stagnation at that time.Don't laugh when some folks point out that we will never see the £10 and upwards price ever again. For example, we have not seen what helpful results can add when the World Stores becomes a paying concern as promised. They didn't buy two loss-making companies for fun!
Boring Bernie
13 Sep 2017
Re: Results - Baked into price The results were pretty much known IOM. I think the market's concentrating on the ..."Sales in the first two months of the new financial year have started positively, with good LFL sales boosted by favourable weather comparatives. We expect to open 8 new stores in the first half of the year of which 4 are already open. An encouraging start"... bit in the Outlook section, with the focus on LFL sales.
FSamps
13 Sep 2017
Spot on In there yesterday, and the furry blankets and fleecy feet-warmers are flying off the shelves. They even have a furry GOT-style scarf at £14. These will be a fantastic hit with customers. I am convinced they know their market very well.
doxdy
13 Sep 2017
Your post reply very much appreciated. Thank you
IOMINVESTCOM
13 Sep 2017
Re: baked Hi Doxdy - Mild positive ie When all the negative news is known (baked into price) and the price rise is quite good and encouraging compared to negative sentiment in the retail space at the moment.atb
doxdy
13 Sep 2017
baked please tell me what you mean by baked into price is your comment a plus or minus onreport
IOMINVESTCOM
13 Sep 2017
Results - Baked into price Seems most of the negative sentiment is baked into the price going by the opening price action.atb
jaymac3
30 Aug 2017
Re: CEO leaves While it is usually disconcerting when a CEO leaves suddenly, this is not the case here as the company already stated that his appointment was subject to a six month trial period during which Will Adderley himself would oversee the company's progress. With share price having been so disappointing, I suspect that the board have been embarrassed to the extent that perhaps Mr Browett would be better to seek a change of challenge elsewhere as he claims. There have been a number of necessary changes in the way the company operates internally and some senior staff have been concerned that these changes have not been taking place quickly enough.It is not known if Mtr. Browett was invited to depart but some staff may now be breathing a sigh of relief so this announcement might not be anything to be concerned about for investors.
Callun
30 Aug 2017
Re: CEO leaves There may be more behind this. "For personal reasons" seems to be in conflict with the phrase " however the next phase of growth requires different leadership".The timing, 2 weeks before results is suspicious. It is sudden, given DNLM have no replacement lined up and John Browett does not appear to have a position to go to, just wishing "to move on to the next chaallenge". I would have thought there was still a big enough challenge at DNLM, given the poor stock valuation.SP diving as a result.Callun
Cantseethewoodsforthetrees
30 Aug 2017
CEO leaves 'For personal reasons'.....See today's RNS.
jaymac3
29 Aug 2017
Re: Smarter Good post Smarter. All your observations are 100% correct. Both Next and Homebase look lifeless - the latter particularly so and many staff have already departed. In one store there was only one person at seven checkouts!.On the other hand here is a real buzz at Dunelm sites and they have had to upgrade all their tills to new faster and more checkouts to avoid waiting times. They have also set up new qjuicker and clever procedures for stock control to makes sure there are very few gaps on the shelves and to speed up correct refills from their warehouses. Surely a very clear sign that they are adapting to customer demands?Like most of us, I am down 50% on my investment but I m certain that even with all the gloomy news and blaming Brexit etc, this is a stonking buy for a Group which is top of the Retail trade in their sector - even above the much respected John Lewis so I am staying in for the long haul!
Cantseethewoodsforthetrees
03 Aug 2017
Re: Directors buying Hope people followed his lead!
