Bed retailer Dreams has announced its full-year 2015 financials, reporting another strong year of growth, including revenue growth of 16.2% to £234.2m, like-for-like sales up 19.4%, and profit before tax of £13.1m.
E-commerce sales were up 41%, and online traffic up 30%, whilst the group's adjusted EBITDA was £21.1m – up 207% on 2014.
Mike Logue, CEO, comments: “These strong results demonstrate the success of our strategic initiatives – continuing to manufacture and provide the highest quality products, broadening our brand appeal, re-sizing and re-furnishing our store estate, improving customer service and providing a seamless multi-channel proposition.
“With a clear roadmap now in place for the next phase of the Dreams journey, and our desire to continue to improve everything that we do, we believe the opportunity is both exciting and significant. This, coupled with our outstanding team of colleagues, means that we look to the future with even greater confidence.”
The year saw Dreams' three-year plan (launched in 2014) progressing ahead of schedule, with every store refurbished, every home delivery van replaced, and the company's factory benefiting from new investment.
Every Dreams store has now been refurbished, at a total cost of £5m. According to Dreams, the positive response from customers to this investment resulted in sales per sqft increasing 21% (+32% over the last two years). As at year-end, the total estate comprised 170 stores, compared to 157 in 2014.
More than 50% of online traffic is now coming via Dreams' improved mobile site, which has seen a 40% increase in conversion rates over the last two years.
Ongoing improvements in product quality have resulted in reduced returns and cancellation rates, and customer satisfaction continues to improve, with 83% of the 100,000-plus customers that have provided feedback through the retailer's Pillow Talk programme “highly satisfied” (77% in 2014). Staff were awarded pay increases for the second consecutive year.
Dreams invested £4m in the Replace Every 8 initiative, and also sposnored the second edition of The Furniture Awards, delivered by Furniture News in conjunction with the January Furniture Show.