Shares round-up: Dunelm, DFS, Future, Churchill China

Market-leading performances by Dunelm Group (LSE:DNLM) and DFS Furniture (LSE:DFS) in the face of continued tough trading conditions today put them among the frontrunners in the FTSE All-Share.

In contrast, a rally for magazine publisher Future (LSE:FUTR) on the back of a return to US advertising growth ran out of steam and Premier Foods (LSE:PFD) wilted after warm weather dented demand.

• Invest with ii: Top UK Shares | Share Tips & Ideas | Cashback Offers

A profit warning by Churchill China (LSE:CHH) also meant the Stoke-based hospitality industry supplier registered one of the worst performances in a weaker AIM index.

In the FTSE 250 index, Dunelm shares neared their high point for 2025 after the homewares retailer wrapped up its financial year with a stronger-than-expected 4% rise in quarterly sales.

The performance against a strong year-on-year comparative built on the third quarter’s 6.3% improvement, when Dunelm reported a positive start to the spring and summer season.

Sales for the year of £1.77 billion grew by 3.8% on the previous year, with digital sales accounting for 40% of the total. The gross margin is now expected to be 60 basis points higher year-on-year, ahead of the company’s guidance range.

• Why FTSE 100 stock Diploma was just chased to record high
• easyJet shares tumble despite rising profits

Dunelm said: “While we are yet to see sustained recovery in consumer confidence, our customers continue to respond to the relevance of our product offer and our fast and convenient channels.”

Shares rose 47p to 1,188p but broker Peel Hunt has a price target of 1,375p, believing that the chain is well set to continue its market outperformance.

Future shares were initially boosted after the publisher of Marie Claire and Homes & Gardens said US advertising returned to growth in the third quarter to 30 June.

The 5% year-on-year rise was accompanied by an improvement in the UK rate, albeit still 8% lower. The Go.Compare division moderated after its “standout” result a year earlier, reflecting the expected slowdown in the car insurance switching market.

Future reiterated market expectations for the year, reassurance that helped shares touch 800p for the first time since March during early dealings. The highly cash generative business later retreated to 716.5p, a rise of just 4.5p in the session.

Peel Hunt, which has a price target of 1,090p, said: “The return to growth in US advertising since March is encouraging. However, the key concern of weakness in traffic remains.

“This plays into investor concerns over the impact of AI search, which we believe is likely to persist in the near term.”

Premier Foods fell 7.1p to 186.3p after sales in the first quarter rose by 0.3%.

The group, whose brands include Ambrosia, Sharwood’s and Loyd Grossman, lapped strong comparatives and felt the impact of warmer weather in some grocery categories.

Branded sales rose 1.2%, reflecting “very strong” volume growth in the Sweet Treats division after new product ranges such as Mr Kipling birthday cake tarts proved particularly popular. Profit expectations for the year were unchanged.

• Here’s where professional investors are piling in
• Sign up to our free newsletter for investment ideas, latest news and award-winning analysis

Outside the FTSE 350 index, DFS Furniture shares lifted 10p to a three-year high of 175p after it forecast profits for the year to 29 June above the top end of the £25 million-£29 million guidance range and up £20 million year-on-year.

As well as growing its share of a subdued upholstery market, DFS said its profit performance benefited from margin rate progression and continued cost discipline.

Panmure Liberum said the possibility of dividends being resumed had increased after net debt fell by more than it had expected, to £107 million from £165 million a year earlier.

The broker, which has a price target of 300p, said the current valuation of 12 times forecast 2026 earnings did not adequately reflect the company’s upgrade potential and ability to win consistent market share in all seasons.

On AIM, Churchill China slid 91.2p to 483.8p after the maker of ceramic products for the hospitality industry said its performance in May and particularly June was materially below target.

UK and US sales have been robust, whereas European and rest of the world trading has been below last year with the German market especially difficult.

It has cut hospitality production in line with the new demand profile and believes it continues to defend market share. However, revenues and profit for 2025 are set to be significantly below the previous year.

The company said: “We continue to prioritise a healthy cash balance, which we intend to retain. We expect our markets to recover in the medium term and see no change to the long-term potential of the business.”