Laura Ashley sees sales up but profits plummet 77%

Published on Wednesday 9 September 2009 21:10

NAUTICAL-style jumpers and Victorian era-inspired cabinets boosted sales in the first half of the year for home and fashion retailer Laura Ashley, although its profits fell 77 per cent, due mainly to foreign exchange movements.

Sales of furniture grew 9.3 per cent on a like-for-like basis – out-performing a market in the UK that was down 4.3 per cent overall. Popular jersey dresses, jewellery and Breton-style jumpers boosted the group's fashion sales by 8.2 per cent, on a like-for-like basis. Overall sales were up 6.3 per cent to 127.8 million.

The firm posted a pre-tax profit of 1.1m for the 26 weeks to 1 August, down from 4.7m due to unhedged currency losses of 5.5m.

In the UK, where the group has 231 shops, store expansion was limited – five stores opened but two were shut.

Despite the healthy sales, the firm's management remained cautious. "No one is certain whether or not we've seen the bottom and are bouncing up," said Lillian Tan, chief executive.