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Summary
- The Confederation of British Industry reported that UK retail sales data for May were in line with normal volumes, however, it was a bit of disappointment following April’s blockbuster results
- The body reported sales dropped to -3 in May from +16 in April, in line with seasonal norms
The UK retail industry reported its May sales had returned to normal after sales surged in April following the lockdown easement for the non-essential sector. According to the industry body, the Confederation of British Industry (CBI), sales fell to -3 in May from +16 in April, which showed that sales volumes were in line with seasonal norms.
Industry experts have said, while the normal sales volumes were an improvement from 2020, it was slightly disappointing compared to April’s strong results.
In this article, we take a deeper look at two FTSE 250 listed retail stocks with a year to date return of over 20 per cent:
- Dunelm Group PLC (LON: DNLM)
FTSE 250 listed and leading UK based homewares retailer Dunelm Group announced in a trading update last week that the sales of the company jumped by 59 per cent in the seven weeks to 28 March on a 2 year basis, when compared to the same period in FY 2019.
The rise in sales was due to its customer proposition strength, pent up demand and other factors. The group also expects its FY 2021 profit before taxes to be over £148 million.
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DNLM’s shares ended at GBX 1,500.00, while the broader market index FTSE 250 stood at 22,438.90, on 25 May.
The company’s market cap was at £3.039 billion, and its year-to-date returns stood at 23.66 per cent, while its five-year average dividend yield stood at 3.1 per cent.
Also Read: Christmas Cheers for Retailers: Tesco (LON:TSCO), Dunelm (LON:DNLM) post strong
- Frasers Group PLC (LON: FRAS)
Frasers Group is an FTSE 250 retail company and owner of department store chain House of Fraser based in the UK. The group announced the purchase of 119,193 of its ordinary shares from Liberum Capital Limited, which will be held as treasury shares by the company.
The transaction was priced at 575.50 pence per share. A total of 122,650,358 ordinary shares is being held by the company as treasury shares.
(Image Source: EODHD/Others)
FRAS’ shares were trading at GBX 570.00, while the retail sector index closed at 2,828.80, up by 0.14 per cent as of 25 May.
The company’s market cap was at £2.953 billion, and its year-to-date returns stood at 26.27 per cent.
Also Read: Frasers Group (LON:FRAS) Withdraws Guidance of A 20-30% EBITDA Improvement
