Dune Group swings to profit amid pandemic recovery
Dune swung to a profit in the year to January 29 after its stores reopened following the end of lockdowns.
The London-based group made an EBITDA of 2.9 million pounds compared to a loss of 9.8 million pounds a year earlier.
The company was hit hard by the pandemic when it was forced to close its stores across the UK and Europe.
It launched a company voluntary arrangement (CVA) in 2021, resulting in the majority of its stores moving to a turnover rent-based model.
A long list of other UK fashion companies launched CVAs during the pandemic, including LK Bennett, New Look, AllSaints, Bair Group, Hotter Shoes, and Monsoon Accessorize.
Dune said it has experienced an uplift in demand for fashion footwear and accessories since lockdown restrictions were eased.
It said recovery post Covid has been “encouraging”, with many stores now achieving pre-pandemic levels of sales.
During the year, Dune opened six outlet stores, one full price store, and has expanded the number of online marketplaces it partners with.
The company also appointed Nigel Darwin as its new CEO last month.
While Dune has shown signs of recovery from the pandemic, it warned that there remain challenges ahead, including “difficulties in shipping from suppliers which has resulted in stock shortages at times”.
“The board actively manages the stock position and trading stance to ensure there is no significant disruption to operations,” it added.