Dune Group seeks investors and faster growth, names KPMG to unearth oppportunities
There's big change due at footwear and accessories specialist Dune Group that has been growing fast in recent periods and has now appointed KPMG to help it find new investors to make the most of the “exciting growth opportunities” it sees ahead.
The company is already investing heavily in its expansion programme with plans for 25 new standalone stores in the UK in the next three years and further spend to boost its online presence.
On Monday, founder and chairman Daniel Rubin announced the drive to find investors saying: “Having spent 47 years in the footwear industry the time is right to realise the investment I have made in Dune. The business is strong with a first-class management team and exciting growth opportunities, both in the UK and internationally.”
He didn’t specify what his future involvement with the company might be once new backers are on board.
Despite the tough economic backdrop, it could be a good time to find new investors. The company has reported strong results recently with the year to January seeing turnover rising to £139 million from £109 million and EBITDA up to £10.1 million from £6.7 million.
Those figures illustrate the wisdom of the changes to its business model that the company made as a result of the pandemic with it scaling back its department store concessions, and growing its e-commerce operations.
And importantly, it also placed a bigger focus on international growth than previously with its international business currently accounting for 35% of sales but forecast to be at 50% within three years. Its growth outside the UK has included online link-ups with Nordstrom and Dillard’s in the US, deals that have reportedly started very well.
Earlier this month, Dune appointed Lindsey Borkowski VP of North American sales. And in January it said it would ramp up overseas store openings.
The company is strong in the Middle East with its 65 stores there to be added to with a further 10 in the year ahead.
And its debut in Lagos, Nigeria, last year with one store exceeded its budget target by more than 50%, so four new stores are to open there this year on the back of its success.
Stores are also scheduled for Pakistan and India during 2023 and franchised stores will be opening or the first time in Egypt, with more concessions in Australia and South America.
Dune also announced a new CEO last autumn, Nigel Darwin joining after most recently being CEO of Toni&Guy where he “led a successful turnaround of the business”.
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