Bed retailer Dreams delivered its fifth consecutive year of LFL and EBITDA growth in 2018, with sales up +2.9% to £309m and LFL sales growth of +1.9%.
Group profit before tax was up +11.7% to £32.7m.
CEO Mike Logue comments: “2018 was a challenging year for the UK retail market. However, our results for the period demonstrate our unwavering commitment to make, sell and deliver the most comfortable beds across the UK.
“We have remained focused on providing an excellent range of products at the right price point which, coupled with our healthy balance sheet, means that we have had the flexibility to adapt to market conditions. This approach has served us well throughout the year and has seen us continue to invest across both our online and physical store estate. As a result, we are proud to have delivered our fifth year of continued sales and profit growth.
“Looking ahead, the sector continues to face difficult market conditions, which have been well publicised, but our continued growth and investment means we are in a solid position at the start of 2019.”
In 2018, a net of 17 new stores opened – including three closures and three relocations – taking Dreams' total to 198. Thirteen stores were refurbished in the period.
The retailer introduced a new product development plan, including mattresses and bed frames, plus sleep-tracking technology across all stores – alongside rolling out its own rolled mattress range, Hyde & Sleep.
Its new mobile-optimised ecommerce platform, launched last August, has helped drive strong LFL results, with October finishing +12%, November +15% and December +49%, along with Dreams' highest-ever online trading day in December.
Dreams now operates from 12 delivery service centres, having opened a new one last year, and has struck up a strategic partnership with Mumsnet.
Dreams reports a strong start to 2019, and states that it will invest in its digital offering and the ongoing refurbishment of its store portfolio.