Dune London Reports Strong Results as It Continues to Expand Internationally
The Dune Group reported another period of “strong results” in late October, crediting the “successful execution” of its brand elevation strategy and international expansion.
In a new filing with Companies House, the UK-based footwear and accessories brand reported net sales were up 20.8 percent to 141.5 million British pounds ($171.5 million, based on current exchange rate) in the 12 months ended Jan. 29, 2023, compared with 117.1 million pounds ($141.9 million) in the same time year.
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Dune also reported that it saw a 73 percent rise in EBITDA to 10.9 million pounds ($13.2 million) in the period. E-commerce revenue also increased 12.8 percent while like-for-like retail sales rose 17.3 percent, the company noted.
During the period, the company said it continued to focus on its store portfolio, especially internationally. In total, the company said it opened 16 concessions, three full-price stores, one outlet store and launched on five new third-party web platforms.
Separately, Dune added that it opened 20 new stores and concessions with its franchise partner in the Middle East, India, Nigeria, Chile and Malta. “Some of the most unusual and niche markets are growing for us,” said Daniel Rubin, founder and executive chairman of The Dune Group, in a September interview.
As for wholesale, the company said it has grown both existing and new accounts in the UK and overseas.
“We have a very omnichannel approach in the U.K.,” said Nigel Darwin, CEO of The Dune Group, of the company’s largest and most important market. “We have a big online presence, a big physical store presence and we work with strong partners.”
Turning to the U.S. market, the company reported that it successfully reentered the North American market in both concessions and online through wholesale and dropship models in the period. A VP of sales was also appointed in the U.S.
Dune is growing its presence with several key partners, including Dillard’s, Nordstrom and Belk.
“In a very difficult market, we’ve found that niche,” said Rubin. “There have been certain styles that have been selling really strongly and it’s giving us a lot of confidence for the next season and where we should focus our energy. In the past, our mistake was to go too wide.”
While Dune previously had a New York store, it is holding off on plans, at least in the near-term, to set up shop stateside.
“We are more risk adverse this time, we want to test out the market and understand where we are,” Rubin said.
In the Middle East, the group will continue to open new stores in high footfall locations across the market, where the company’s dressy footwear styles are resonating strongly.
Aside from store growth, Dune also noted in its most recent earning statement that it will also invest in category development, in particularly in men’s and accessories.
These latest results come as Dune acquired the remaining 50 percent of its Swiss joint venture in March, allowing it take full control of its business in the region.
In March 2022, Dune underwent a corporate reorganization to simplify the group structure with a new holding company and separate brand and operating entities. As a result, the two new companies were incorporated: Dune Topco Limited, the new holding company of the group, and Dune Brand Limited, the holder of the group’s intellectual property. Ownership of Dune Group Limited, Dune International Limited, Dune London HK Limited and the share in the Swiss joint ventures were transferred to the new holding company.
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