Austin Reed suffers losses

The UK clothing firm reported a first-half loss before taxes of GBP 2.7 million. Furthermore, not taking into account the closing of shops and the opening of new sales points, sales fell 0.5% in the first weeks of the second-half. Shares fell 2.6% during trading this morning, valuing the company at GBP 42 million.

According to Nick Hollingworth, Chief Executive of Austin Reed, the sluggish sales are due to declining interest from women over 40. In an interview with news service Reuters, he admitted that women over 40 used to start dressing like their mothers. These days they are more likely to start dressing like their daughters. As a result, the firm's Casual Country brand is suffering. The brand's sales fell 5.5% in the first seven weeks of the second half.