Laura Ashley full year profits plummet to £100,000

Homeware retailer Laura Ashley has announced its annual profit before tax reached a low of £100,000 in 2018, due to “difficult trading conditions”.

In the group’s full year results, total like-for-like retail sales were down 0.4% and total group sales declined to £257.2m, a fall of £19.8m compared with 2017. The group’s online results provided some positives, with online sales up 4.1% on a like-for-like basis and online revenue increasing by £2.4m to £59.7m in 2018.

Laura Ashley signed with a new license partner in Thailand earlier in the year and said it is looking forward to the opening of its first two Thai stores during the new financial year. Additionally, the retailer said its Chinese digital platforms have continued to grow and are making good progress in developing its presence in the territory.

Chairman Tan Sri Dr Khoo Kay Peng said:  “As set out at the time of the interim results, the trading environment for the 1st half of the year was challenging and the Board expected these difficult trading conditions to continue into the second half of the year.

“This proved to be the case and, given the softer trading environment for the year ended 30 June 2018, we are disappointed to report a fall in profits. Continued margin pressure and the impact of a changing retail landscape have contributed to the overall reduction in profit before tax.”