Laura Ashley swings to 14.3 million pounds losses

Clothing and furnishing retailer Laura Ashley has reported a pre-tax loss of 14.3 million pounds (17.3 million dollars) in the year to June 30, compared to a profit of 100,000 pounds in the prior year. The company has blamed weak performance of its home furnishing business and changes made to its website late last year for poor annual trading.

Reuters quoted a statement from Chairman Andrew Khoo, which said: “The last twelve months have proved to be a difficult trading period for the group and indeed for the retail sector as a whole. Weak consumer confidence had been one driver of the 10.1 percent fall in furniture sales, but said the company remained confident of its product range and would introduce more contemporary styles in the months ahead.”

The company, which issued two profit warnings earlier this year, said that total UK retail sales fell to 222.9 million pounds (270.5 million dollars) from 236 million pounds a year ago, impacted by closure of six store closures and low consumer sentiment. Like-for-like retail sales fell by 3.5 percent, while UK sales of furniture were down 9 percent, and decorating, down 13.7 percent. However, the company’s fashion collections performed well and posted a sales rise of 9.2 percent, while home accessories grew 1.1 percent.

Picture:Facebook/Laura Ashley