Losses widen at Dune as rising costs outpace revenue growth
High street footwear retailer Dune London has reported modest top-line growth in the year to 1 February 2025. However, widening losses reveal the challenge facing the footwear and accessories retailer.
Turnover rose 2.2% to £97.1 million, up from £95 million the year prior.. However, operating losses widened to £8.3 million, compared with £6.6 million in 2024, as rising costs outpaced revenue gains.
The group posted a loss before tax of £9.8 million, up from £7.7 million the previous year, with net losses for the period increasing to £8.6 million. Administrative expenses climbed to £63.1 million, reflecting higher employment costs, cost inflation and less favourable lease renewals. Gross profit slipped slightly to £56.3 million, despite sales growth.
Within the year, Dune pointed to accessories, particularly bags, as a standout category, delivering strong growth driven by elevated materials, improved design and targeted marketing. E-commerce also continued to outperform stores, with website sales up 4.3% year-on-year and total e-commerce revenues rising 8.7%.
Like-for-like retail sales increased 0.7%, while the store estate continued to edge down as the group focused on productivity rather than footprint.
At year-end, Dune operated 48 stores and 76 concessions, compared with 50 stores and 75 concessions the year before. The retailer also opened one new outlet location and launched on two additional UK and European online marketplaces.
Looking ahead, Dune said it will "focus on increasing profitability in a smaller number of more productive stores, driving our outlet business, driving digital excellence and growing our partnerships with third-party retailers."
The company added that marketing has been elevated through increased use of influencers and celebrity partnerships, with the brand aiming to drive consistency across product, stores and digital touchpoints. The business is also investing in CRM to enable more personalised customer engagement.
