Dreams posts record results with 136% rise in pre-tax profits

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Dreams, the UK’s number one specialist bed retailer, has reported a 136% rise in pre-tax profits to £32m for the 52 weeks to 24 December 2016. Sales rose 20% to £280m and by 14.1% on a like-for-like basis. E-commerce sales were reported to be up 34% with 16.7m visits to the Dreams digital proposition during the year, including the “Sleep matters” app, which was launched in May and provides customers with sleep analysis and recommendations.

During the year, Dreams opened 14 new stores, including three relocations, taking the total store count to 181. A further 10 stores were refurbished in the period meaning that every Dreams store has been refreshed and refurbished to the retailer’s “Comfort by Colour” format.

Dreams said it has continued refreshment and investment in product lines, technology and ranges. New products include the Hyde & Sleep “bed in a box” mattress and the M Line Orthopaedic mattress range, launched in conjunction with Victoria Pendleton, Joe Root and Billy Vunipola.

Dreams invested over £1m investment into the Dreams Bed Factory, based in Oldbury, last year and completed replacement of all 130 delivery vans and investment in drivers to deliver better customer service.

The retailer said it has had a strong start to the year and is currently well-positioned to take advantage of further growth opportunities.

The company will launch a new store concept later this year as part of the drive to continually evolve and improve the shopping experience for customers. A new digital store format will also be launched later this year.

Mike Logue, CEO of Dreams, commented: “2016 was a pivotal year for Dreams, building on the last three years of growth. Our significant investment, matched by the incredible efforts of our 1,850 colleagues across the UK in our factory, our 181 shops and our delivery centres have enabled us to achieve these record results.

“We attribute this performance to our continued determination to make, sell and deliver the most comfortable beds, provide market leading quality, value and choice and to always put our customers first. I want to thank everyone at Dreams for their passion, hard work and dedication over the year.

“Whilst potential future challenges to the UK consumer economy are well documented, we are confident that we will continue to successfully execute our strategy and that it will be another year of significant progress for Dreams.”