Laura Ashley tackling falling sales
Cost cut to meet forecasts
Laura Ashley has reported a fall in sales as it faces a tough UK market for home furnishings, the new focus of the business.
Laura Ashley said both its home furnishings and fashion businesses have seen improved margins, despite a decline in turnover. In the 24 weeks to January 15, total like-for-like sales in the UK were down 11.6 per cent. UK home furnishing like-for-like sales decreased 4.1 per cent and fashion like-for-likes decreased 28.2 per cent.
In the 50 weeks to January 1, total like-for-like sales in the UK were down 10.1 per cent, with home furnishings up 0.1 per cent and fashion down 31.2 per cent.
The company said that over the 50 weeks its margins in the UK have seen sustained improvement, but “in line with the home furnishings sector as a whole, we have experienced a difficult trading environment and increased competitiveness”. The decline is also due, in part, to a reduced reliance on promotions.
Laura Ashley said that cost cutting and margin improvements mean profit before tax for the full year should be within the range of brokers’ forecasts. The company did not give specific Christmas trading information, since its customers tend to make large purchases of furnishings, which now account for three-quarters of UK sales, outside the Christmas period.
