Russ Mould, investment director at AJ Bell, said: “There’s not much to cushion the blow for investors from homewares specialist Dunelm’s soggy Christmas update, particularly given it has prompted the company to issue a profit warning.
“The company reported sluggish festive sales, potentially not helped by a Budget-inspired slowdown in the property market which will have meant fewer people were looking to spruce up their new home with curtains or soft furnishings.
“While the backdrop has been genuinely unhelpful and competition has been fierce, Dunelm has also been the master of its own downfall in some areas.
“Availability issues with furniture have been a significant issue for the business.
“A key tenet of retail is making sure you have the right products in the right place at the right time and at the right price point for shoppers.
“Get this bit wrong and any retailer is likely to run into problems.
“When you add to the mix the pressure from rising costs, Dunelm has it all to do to improve performance and rebuild its credibility with the market.”
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