Dune London has recorded a fall in profits thanks to a combination of the weakened sterling and cost pressures taking its toll.
According to the Mail on Sunday, the footwear retailer booked a 34 per cent decline in profits to £5.3 million for the the year ending January 31 this year, while sales increased 6.6 per cent to £184.2 million thanks to online demand.
Online sales now make up 35 per cent of Dune’s retail revenue within the UK and Europe, and the British brand added that like-for likes were positive across all key retail distribution channels.
Dune explained that its profit decline was “both a consequence of sterling weakness driving up production costs, and the impact of cost pressures faced by all retailers such as the national living wage increases, the introduction of the apprenticeship levy and an increase in business rates”.
The retailer, operates 232 concessions, also warned about structural issues within some department stores, such as beleaguered chains Debenhams and House of Fraser.
Despite this, Dune insisted that its store portfolio was in “excellent shape”, highlighting how most stores have now been refurbished and are located in high footfall locations.