Dunelm lowers guidance as consumer confidence remains shaky
Mark Crouch, market analyst for eToro, says: “Dunelm’s latest update raises some concerns. First-half sales rose 3.6%, helped along in no small part by digital sales, which accounted for 42% of total Q2 sales. That online momentum is encouraging and reinforces Dunelm’s long-term strategy, but it doesn’t offset the bigger question hanging over the shares and sector at large, consumer confidence.
“Management expects FY26 profits to land at the lower end of expectations, and that guidance has severely shaken confidence. Margins did improve by 60bps, but the lift came largely from FX tailwinds, not pricing power, and while currency help is always welcome, it’s not something investors can bank on. Until consumer confidence genuinely turns, future earnings will likely remain subdued.
“The decision to press ahead with two new superstores will be encouraging for investors, but it also adds further risk at a time when discretionary spending remains fragile. For now, Dunelm looks well-run and defensively positioned, however without a clearer consumer recovery, the shares may struggle to break out meaningfully into 2026.”
Cautious update sinks Taylor Wimpey
“Another day, another disappointing update from a UK housebuilder. Margins fell, and are expected to weaken further, and hopes that demand will improve later in the year aren’t enough to rescue the shares”>
M&B talks turkey with record Christmas Day
Adam Vettese, market analyst for eToro, says: “Mitchells & Butlers’ festive trading update reads well for investors, with like for like sales up 4.5% through early January and a blockbuster Christmas period 7.7% growth over the core weeks and 10.5% across the peak five days, including record takings on Christmas Day. This marks continued market outperformance for its diverse estate of over 1,700 sites, bolstered by 51 strategic conversions that should drive future returns through better mix and pricing power.
“Yet the positives come against a tough cost backdrop. Impending April wage hikes to £12.71 national living wage will squeeze margins further, while business rates anxiety and fragile consumer spending add caution. Shares have shown resilience after a dip into the back end of last year and are positive this morning.
“The investment case stays constructive for patient holders, strong brands like Miller & Carter and All Bar One, freehold leverage, and sales momentum point to earnings upside. But near-term trajectory could be range bound unless margins hold firm through inflation and other sector specific risks.”
IG sees record silver trading as retail investors continue to back ‘unprecedented’ rally
Investing and trading platform IG recorded its biggest-ever trading week for silver last week, as retail investors continue to back the precious metal’s rally.
The total number of silver trades was 83% higher than the previous record, set just two weeks earlier, while trading volume also hit a new peak, up 70% on the previous record. No other week in IG’s history has come close.
Over the past year, investors have increasingly turned to silver as geopolitical tensions drive demand for ‘safe-haven’ assets such as gold and silver. Over that period, the price of silver has surged by almost 200%.
Commenting on the figures, IG Chief Market Analyst Chris Beauchamp said: “The word ‘unprecedented’ gets bandied around a lot, but the surge in silver prices truly fits the bill. The rally has been fuelled by a rush for physical assets, a decline in cryptocurrencies, and momentum in a market with thinner liquidity. IG traders have jumped on the move.
“Trading silver is not without risk – the late December shakeout showed that clearly. While the rally shows no sign of slowing yet, investors should remember the late October pullback: when the next correction comes, it’s likely to be dramatic.”
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