Beds specialist Dreams has reported strong profits and a surge in turnover, despite squeezed margins and temporary store closures last year.

Profit before tax rose 5.1% in the 52 weeks to December 24, 2021, to £48.7m from £46.3m in 2020. Turnover saw an 18.6% boost to £358.4m from £302.1m.

The robust results are in spite of the “economic challenges” faced by the retailer last year, including the 14-week closure of its stores due to Covid-19 restrictions and increasing supply chain costs, with gross margins dropping 0.6% below the previous year. 

Strong online sales and high demand supported the business, which saw underlying EBITDA increase by 6.4% to £60.7m.

The results mark the seventh year of consecutive profit growth at Dreams and are the first since the completion of its £340m sale to mattress and bedding manufacturer Tempur Sealy International in August 2021.

It is also the first filing with Jonathan Hirst at the helm. He took over as chief executive following the exit of Mark Logue at the beginning of the year. 

Dreams opened seven stores over the year and closed eight, leaving it with 207 locations in total at the end of 2021.

  • Don’t miss the best of the week – sign up to receive the Editor’s Choice every Friday

Topics