Posts in LSE:DNLM

Broker Forecast - Barclays Capital issues a broker note on Dunelm Group PLC

Barclays Capital today reaffirms its overweight investment rating on Dunelm Group PLC (LON:DNLM) and set its price target at 860p.

Broker Forecast - Deutsche Bank issues a broker note on Dunelm Group PLC

Deutsche Bank today reaffirms its hold investment rating on Dunelm Group PLC (LON:DNLM) and raised its price target to 640p (from 630p).

Sterling suffers on post-Brexit flight warning

Sterling weakened on a warning from Chancellor Phillip Hammond that flights could be grounded in the UK if no deal was sealed before leaving the European Union.

Despite the decline in the value of the pound, the FTSE remained flat at 7,532 thanks to a continued underperformance from the banking sector.

Lloyds (LLOY) led the sector lower, down 0.8% to 66.4p. Royal Bank of Scotland and HSBC (HSBA) both dipped 0.8% and 0.6%.

Brent crude oil fell 0.6% to $56.22 per barrel. Gold declined 0.3% to $1,286 per ounce and copper climbed 0.6% to $3.06 per pound.

FTSE flat as utilities fail to offset underperforming banks

The FTSE 100 drifted lower to 7,539 as small gains in utility firms failed to offset weakness in banking stocks.

News that a price cap on energy bills would be unlikely to come into effect before this winter helped British Gas owner Centrica (CNA) rise 1.8% and SSE (SSE) advance 1.5%.

Banks were among the top blue-chip fallers, with HSBC (HSBA) and Royal Bank of Scotland (RBS) slipping 0.7% and 0.9%, respectively.

Brent crude oil was up 0.3% at $56.77 per barrel. Copper was flat at $3.04 per pound and gold slid 0.3% to $1,286 per ounce.

Dunelm like-for-like revenues up 9.3% in first quarter

Dunelm Group's total revenue for the first quarter rose by 24.8% to £247.9m with like-for-like revenues up by 9.3%.

Group gross margin in the quarter was in line with the group's expectations but 220bps lower than last year.

It said this was due to two reasons.

'Firstly, the mix effect of the addition of lower margin Worldstores sales reduced gross margin by 120bps.

'In addition, as previously highlighted, our focus on newness in our latest ranges and the planned higher seasonal sales mix impacted margins in the quarter by 100bps; this is not expected to continue.

Director Deals - Dunelm Group PLC (DNLM)

Keith Down, Financial Director, sold post-exercise 8,000 shares in the company on the 19th September 2017 at a price of 647.00p. The Director now holds 40,098 shares.

NOTE: Sold to meet tax liabilities etc.

Director deals data provided by www.directorsholdings.com

Director Deals - Dunelm Group PLC (DNLM)

Keith Down, Financial Director, exercised 26,488 shares in the company on the 19th September 2017 at a price of 0.00p. The Director now holds 48,098 shares.

Director deals data provided by www.directorsholdings.com

Pound remains near 12-month highs as FTSE falls

Despite UK wage growth stalling the market is still expecting the Bank of England to offer hints of an interest rate rise at tomorrow's meeting off the back of yesterday's big rise in inflation.

This provides support to sterling which is close to its highest level in 52 weeks.

FTSE struggles as miners fall

The FTSE 100 failed to gain positive momentum as miners remained weak.

Anglo American (AAL) led the sector lower with a 1.4% drop to £13.70. Fresnillo (FRES) and Glencore (GLEN) followed, down 1.6% and 1% to £15.45 and 366.8p, respectively.

Cigarette seller Imperial Brands (IMB) drifted 0.5% lower to £33.03.

The FTSE 100 traded 0.1% in the red at 7,388.

According to media reports, motor insurer Sabre is planning an IPO after its owners failed to find a buyer. The company is expected to be valued at £600m.

Brent crude oil rose 0.6% to $54.60 per barrel.

2 high-yield dividend stocks at rock-bottom prices

Last month, inflation increased to 2.9% while the FTSE 100 continues to trade close to its all-time high. As such, it is becoming increasingly difficult for investors to obtain a real income return at a reasonable price. Looking ahead, inflation is set to rise yet further, and with the pound likely to weaken it would be unsurprising for share prices to move higher. With that in mind, now could be the right time to buy these two cheap income stocks.