// Dune returned to profit in its financial year ending 29 January as it hailed “encouraging” post-Covid trade
// The retailer is pushing ahead with store expansion to plug the holes left by the closure of Debenhams
Dune has returned to profit following an “encouraging” post-Covid recovery as it eyes store expansion.
The footwear retailer posted a £2.9 million EBITDA in the year to 29 January 2022, compared to a £9.8 million the previous year.
It said that many stores were achieving pre-pandemic levels of sales with retail like-for-likes rising 29.4%, although this was pitched against a year when store closures were rife.
The retailer is now looking to open more space, particularly in locations where it used to have department store concessions.
Dune, which had 50 stores and 73 concessions at its year end, had 124 concessions the previous year but was hit by the closure of Debenhams and the transition of its House of Fraser tie-up from concession to wholesale account.
The retailer said: “We see considerable opportunity to grow the Dune London brand and improve profitability through new marketplaces, investment in our ecommerce platforms to make it best in class and having a profitable and expanding UK store estate.
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“At the same time, we will manage our costs and cash to improve our position and remain flexible in response to changing conditions.”
Over the last financial year, it opened six Dune outlet stores, one full price store and has expanded the number of online marketplaces it trades on in its last financial year.
Elevating the Dune brand
Dune carried out a CVA during the year, allowing it to move onto turnover-based rents at the majority of its stores, which it said had increased the flexibility in its cost base.
The retailer said that Covid had given it the chance to re-evaluate its strategy and focus on “elevating the brand and improving margin”.
It plans to enhance product and brand marketing and offer a “premium customer shopping experience”.
The retailer is also expanding its range with the launch of its Dune London kids range.
Over the year, it’s online sales fell 11.9%, which it said was due to the exit of certain brands as it pushed ahead with its brand elevation period.
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