Dune has swung to a loss in ‘challenging’ year

Dune reported EBITDA of £4.9m for the full year to January 27, 2024, down from £10.9m in 2023.

The fashion retailer also posted a loss of £3.86m before tax compared to a profit of £6.98m last year, and an operating loss of £3.9m down from an operating profit of £7.6m last year.

Dune’s sales during the year were up marginally from £141.54m to £141.96m, which the retailer said reflects “good progress” on its key omnichannel growth platforms in the UK market.

During the year Dune opened five full-price stores as well as new stores and concessions with franchise partners across the Middle East, Australia and Nigeria.

Dune added that it is continuing its expansion strategy in North America through both concessions and online wholesale and dropship business models.

Dune hailed its growth during the year against a “challenging and unpredictable trading environment” and noted the ongoing cost-of-living crisis, unseasonable weather and geopolitical challenges as barriers that took a toll on demand for footwear and accessories.

Looking forward, Dune said it has a “clear strategy” for future growth and plans to continue investing in its online operations and partnerships as well as bolstering its store portfolio in “high footfall locations”.

Dune also highlighted the Middle East as a particular area of opportunity for international expansion as well as growth across its product categories, especially in accessories and menswear.

Dune said in a filing on Companies House: “Overall, we see considerable opportunity to continue to grow the Dune London brand and improve profitability through new marketplace and wholesale opportunities, investment in our ecommerce platform to make it the best in class and having an expanding UK store estate. 

“At the same time, we will manage our costs and cash to improve our position and remain flexible in response to changing conditions.”