Signs of of hope at Austin Reed
Sales decline eases at fashion retailer
Austin Reed has seen an improvement in the rate of sales decline over recent weeks, although it continues to find the going tough.
In the 18 weeks to June 4, the upmarket fashion retail group has seen total retail sales decline by 5 per cent, with a 3 per like-for-like fall.
That compares to a 7 per cent total decline and 6 per cent like-for-like fall reported for the first 10 weeks of the financial year.
Across the 18 weeks, total sales in the core Austin Reed brand increased by 3 per cent, with like-for-like sales up 1 per cent. The company said its Austin Reed casualwear and womenswear ranges have performed well.
[img r]Cc5.jpg[/img]By contrast, the Country Casuals womenswear brand has seen total sales fall by 10 per cent, with like-for-like sales down 6 per cent.
The company said it has focused on full price sales at Country Casuals, with margins showing significant growth. The range is being rebranded and relaunched as CC, and Austin Reed has has said it expects to see improvements in the second half of the year.
Chief executive Nick Hollingsworth told shareholders: “We remain confident that the changes implemented during 2004 and those planned for 2005 will improve financial performance.
“We recognise however, that the difficult trading environment is likely to continue in the remainder of 2005.”
