Dune Topco, the parent company of Dune London, has released its annual accounts for the year ending in January. The company reported a slight increase in turnover, reaching nearly £142 million, up from £141.5 million the previous year.
At the end of the period, Dune operated 150 stores and 162 concessions, an increase from 144 stores and 157 concessions the year before. Online sales saw a year-on-year growth of 2.3%, contributing to an overall increase of 3.9% in e-commerce sales. Additionally, like-for-like retail sales rose by 1.4%.
Despite these positive sales figures, gross profit decreased to £68.2 million from £69 million. This decline was attributed to higher costs of sales and various exceptional expenses. Earnings before interest, taxes, depreciation, and amortization (EBITDA) also fell significantly, dropping to £4.9 million from £10.9 million. The company reported an operating loss of £3.9 million compared to a profit of £7.6 million the previous year, with a net loss of £1.6 million after recording a £5.66 million profit in the prior year.
Dune Topco noted that its like-for-like growth during the period demonstrated strong performance in both the UK and international markets, particularly in Accessories and Men’s categories. The company opened five full-price stores and made operational improvements to its e-commerce platform.
Expansion efforts included new stores and concessions in collaboration with franchise partners in the Middle East, Australia, and Nigeria. Dune also increased its wholesale accounts in the UK and abroad and continued to grow its presence in North America through concessions and online sales.
However, these developments occurred in a challenging trading environment marked by a cost of living crisis, unfavorable weather, and geopolitical instability, which dampened demand for fashion footwear and accessories. Rising costs further impacted profitability. In response, Dune Topco has implemented internal restructuring measures aimed at simplifying operations and reducing costs.
Looking ahead, the company has outlined a clear strategy for future growth. This strategy focuses on elevating the brand, enhancing customer engagement, improving digital capabilities, and establishing Dune London as a global brand. The company plans to enhance its product offerings and marketing efforts while providing a premium shopping experience. It is also making strides toward sustainability in its products, supply chain, and operations.
Dune Topco intends to invest further in its online operations and build partnerships, particularly focusing on customer relationship management. The company will continue to open new stores in high-traffic areas whenever it can secure favorable rental agreements.
Additionally, Dune acquired the remaining 50% of its Swiss joint venture, granting it full control over its operations in that region.
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