Dune maintains sales despite tough backdrop that impacted profits

Dune London’s parent company Dune Topco has filed annual accounts for the period to the end of January with turnover rising only marginally to just under £142 million from £141.5 million a year earlier.

The company had 150 stores and 162 concessions at the end of the period, up from 144 and 157, respectively, a year earlier. Sales through the Dune website grew 2.3% year on year and total e-commerce sales grew 3.9%. Like-for-like retail sales were up 1.4%.

But gross profit dipped to £68.2 million from £69 million as the cost of sales and various exceptional costs weighed on the figure, while EBITDA fell to £4.9 million from £10.9 million. The operating loss was £3.9 million after a profit of £7.6 million in the previous year and the loss was £1.6 million after a £5.66 million profit the year before.

But the company said that its like-for-like growth during the period reflected good progress both in the UK and internationally with strong category development too, particularly in Accessories and Men’s.

During the period it open five full-price stores and implemented operational improvements to the Dune London e-commerce platform.

New stores and concessions were also opened in conjunction with its franchise partners in the Middle East, Australia and Nigeria and it has grown existing and new wholesale accounts in the UK and overseas. It has also continued expansion in the North American market both in concessions and online through wholesale and dropship models.

This was set against the backdrop of a challenging and unpredictable trading environment that was affected by the cost of living crisis as well as unfavourable weather patterns and geopolitical instability.

This affected demand for fashion footwear and accessories and accentuating consumers’ focus on newness and value. Cost inflation also had a significant impact.

As seen above, this all impacted profitability and in response the group has implemented internal restructuring measures to simplify operations and rationalise its cost base.

But it said it has a clear strategy for future growth that concentrates on the strategic pillars of brand elevation, a focus on the customer, digital capability and making Dune London “a truly global brand”.

It will continue to “elevate” the brand through enhanced product and marketing and by offering a premium customer shopping experience. And it said it’s also making important strides in making the product, supply chain and operations more sustainable.

The company is planning further investment in online operations and partnerships with a particular focus on customer relationship management. And it will continue to open new stores in high footfall locations when it’s able to secure attractive rental terms.

During the period the group also acquired the remaining 50% of its Swiss joint venture allowing it to take full control of its business in the region.