Dune back in profit after "encouraging" post-COVID recovery

Dune London is back in the black after an "encouraging" performance at the footwear and accessories retailer post-COVID.

In the year to January 2022 Dune London posted EBITDA of £2.9 million versus a loss of £9.8m in the prior year when the business was obliged to close its physical retail stores for much of the period due to the pandemic.

Sales in the year were up to £78.6m compared to £67.6m in the prior year as demand for footwear and accessories grew following the lifting of Covid restrictions.

The business entered a CVA on 9 February 2021, which was unchallenged by its creditors and which allowed it to renegotiate most of its store leases, which now operate on a turnover-based model.

Many stores are now achieving pre-pandemic turnover levels and the business opened six outlet stores and one full-price store during the period, as well as increasing its number of online retail partners. It said it would continue to open stores in "high footfall" locations and, in particular, it would look at locations where it used to have a department store concession that no longer operates.

Chairman Daniel Rubin said that while the period of the pandemic had been "a challenging time", it had allowed the business to re-evaluate its model and it was now focused on elevating the brand and improving margins, while engaging in less promotional activity.

"The company has a clear strategy to elevate the brand through enhanced product and brand marketing and a premium customer experience as well as broadening the offer with the introduction of a Dune Kids range. The Group is also making strides in making its product, supply chains and operations more sustainable," he said.

While the new financial year had got off to a promising start, Rubin cautioned that the company continued to face on-going supply chain issues as a result of the fall-out from the pandemic and the board was actively managing the situation.