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Fashion and homeware retailer Laura Ashley has said its performance for the 2018 will “fall short of market expectations”, after posting an 8.7% sales slump for the 26 weeks to 31 December.
The group announced that it broke-even in profit before tax and exceptional items for the last six months of 2018, with total group sales down £11.8m to £122.9m, compared with the same period in 2017.
The decline in total revenue was primarily due to the closure of four stores during the period, a like-for-like retail sales drop of 4.2%, and the termination of the master license agreement with its previous Japanese partner.
The retailer blamed “continued market turbulence”, but said it was encouraged by its fashion performance, which achieved like-for-like growth of 11.8%.
The retailer recently announced it is to close 40 UK stores as it expands its Chinese business. Laura Ashley has already closed 40 UK stores since 2015 with owners Malayan United Industries (MUI) planning to reduce its UK presence to 120 stores.
The group then wants to expand the existing stores once closures are complete. The firm said it would look at moving staff from any affected stores to larger outlets.
Chairman Andrew Khoo said: “Trading conditions have been difficult during the first six months of the year to 31 December 2018.
“We have recently launched a new digital platform which is expected to improve online sales in the years ahead. This improved platform incorporates enhanced functionality, superior customer interface and advanced technological capability.”
