Dreams enjoyed a bumper year, with profits more than tripling as the company’s turnaround plan begins to bear fruit.
In the year to 23 December Dreams’ like-for-like sales rose 19.4% and its EBITDA 207%. Total sales climbed 16.2% to reach £234.2m.
This dramatic turnaround is the result of the ‘three year plan’ instigated by CEO Mark Logue, who took control of Drams in August 2013. At the time the comp any was losing £5m a year, and a takeover by Sun Capital was necessary to buy Dreams out of administration and save 1600 company jobs. Since then, Sun Capital has invested £18m in the business.
“We are only in the second year of a three-year plan but we are a year ahead of schedule,” Logue said.
Sales conversion rates rose to 19.4%, whilst sales per worker have risen 23% since 2014, and sales per square foot 32%. The company’s focus on product improvement has driven renewed success; with returns rates falling to 5%.
“Yes, the timing is good as the market has improved by we are improving at three to four times the market rate,” Logue continued. “The speed of this journey has been incredible.”