Dreams profits even higher than previously signposted

Dreams reports a surge in underlying profits during the pandemic as online sales picked up the slack from closed stores. 340m deal
Dreams chief executive Mike Logue said the retailer is ‘confident for the future’.
// Accounts for Dreams show a bigger jump in profits than that originally indicated by Tempur Sealy
// Overall revenues for the retailer dipped from £333m to £319m last year as stores remained closed for 16 weeks of the year

Dreams has reported a surge in underlying profits during the pandemic as online sales picked up the slack from closed stores.

As said by Retail Week, profit before tax rose in the 52 weeks to December 24, 2020, to £46.9 million from £35.3 million in 2019.

Underlying pre-exceptional EBITDA rose to £57.1 million from £47.8 million the year prior.

Dreams chief executive Mike Logue said the retailer is “confident for the future”.

Online sales at the retailer increased by 66 per cent in the same period compared to 2019 figures, with the business completing the acquisition of Feather & Black’s online operations last year.

Overall revenues for the retailer fell from £333 million to £319 million last year as stores remained closed for 16 weeks of the year amid Covid-19.

Dreams also opened six new stores over the year, refurbished four stores and relocated four more during the period. Overall, the company completed 544,500 deliveries across the year.

The retailer also said its estimated £340 million sale to Tempur Sealy was completed on August 2, having first been announced in May.

Logue said: “These robust results are testament to the strength of our brand and of course, the dedication, commitment and resilience of our people.

“In what has been the most challenging period for retailers in history, in which our stores were shut for 16 weeks, Dreams has continued our mission to provide better sleep for all, by continuing to focus on customer satisfaction, offering quality products, more choice, great service, and fast delivery.

“Since reopening stores in April 2021, we have seen sustained like-for-like growth across all major categories, which leaves us confident for the future. The recent acquisition of our business by Tempur Sealy demonstrates the transformation we have delivered over the last eight years. With them, we now look forward to driving our growth and building on our leading position in the market.”

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