Dreams upgrades profit forecast

The Bed retailer Dreams has significantly upgraded their profit forecasts for the year after a series of improvements triggered a surge in sales.

The 161-strong chain’s chief executive Michael Logue said the rise in demand meant profit in the year to December would now be more than £18million, compared with £6.9million last year.

It had originally been aiming to hit £12.5million. 

It has been boosted in part by a marketing campaign to encourage customers to switch mattresses after eight years rather than the average of 12 years.

Logue presented the figures to the company’s owner Sun European on Friday. 

Store refurbishments, better customer service and improvements in production at its factory in Oldbury in the West Midlands had all helped to lift sales and reduce returns.

More than 100 branches were closed during a restructuring in 2013, but Logue said the business could now put the troubles of the past behind it.

‘If we can confidently deliver the right product and the right service we believe there is an opportunity to open another 60 stores,’ he added.

Source: Neil Craven - Financial Mail on Sunday.

Read more: http://www.thisismoney.co.uk/money/markets/article-3241342/18m-s-stuff-Dreams-Bed-retailer-upgrades-year-profit-forecasts-sales-rise.html#ixzz3mS3Mkf4A 
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