Dune's annual results hit by House of Fraser collapse and challenging retail

For the year to January 26, 2019 Dune Group reported pre-tax profit before exceptional costs of 4.3 million pounds compared to 3.8 million pounds in 2018, which the company said, was achieved despite structural changes at a key concession partner, House of Fraser, which resulted in the closure of their website for several weeks and a 1.2 million pounds debt write-off, following their administration in August 2018. The company’s turnover reached 143.8 million pounds compared to 150 million pounds in the previous year, while operating profit dropped to 3.5 million pounds (4.5 million dollars) against 4.4 million pounds in 2018.

The company, however, achieved positive like-for-like sales growth through all distribution channels, with the exception of House of Fraser, with its own website most growing by 13 percent. EBITDA before exceptional costs increased 2.3 percent in the period to 9 million pounds (11.5 million dollars).

There were 37 stores and 164 concessions at period end compared to 35 stores and 166 concessions in 2018. During the year under review, Dune closed seven stores and opened six outlet stores and five concessions in department stores. The company plans to open more outlet stores, both in the UK and Europe, to expand its market reach.

The company added that trading climate during the period was challenging with the uncertainties created by Brexit negatively impacting retail demand and there was also a rapidly changing retail landscape as the sector responds to changes in consumer behaviour, not least the ongoing trend towards digital commerce, rising costs and a weak pound.

Picture:Dune London blog