Dune posts £3.9m loss amid ‘challenging’ trading
Looking ahead, the group stated that it plans to further invest in its online operations and partnerships
Dune has reported an operating loss of £3.9m for the 52 weeks period ended 27 January 2024, compared with operating profit of £7.6m recorded the previous year.
The group’s gross profit also declined from £69m to £68.2m, while EBITDA fell from £10.9m to £4.9m.
Additionally, the brand’s turnover remained flat at £141.9m, compared with £141.5m in the previous year.
Dune attributed this negative performance to a challenging and unpredictable trading environment in which the impact of the rising cost of living, unseasonal weather patterns and geopolitical instability “affected demand for fashion footwear and accessories”.
However, sales through the Dune website grew +2.3% year on year, total ecommerce sales grew by +3.9% and LFL retail sales for the period were up +1.4%.
By the end of the period, the retailer operated 150 stores and 162 concessions worldwide, up from 144 stores and 157 concessions in 2023.
Looking ahead, the group stated that it plans to further invest in its online operations and partnerships. It will also continue to open stores in high footfall locations.
Overall it sees considerable opportunities to continue to grow the Dune London brand and improve profitability through new marketplace opportunities, investment in its e-commerce platform and having an expanding UK estate.
CEO Nigel Darwin said: “The global retail and consumer backdrop has been soft and inflationary pressures during the period were high. We are working through a transition period where our profitability is below the level we expect for the business in the future.
“We continue to focus with clear intent on positioning the Dune brand to take advantage of the significant growth opportunities ahead – including investing in new markets, infrastructure, and the Dune London brand – while in parallel our teams work hard to drive efficiencies and control costs.”
