British Fashion Contrasting Fortunes

Contrasting fortunes in the high street were highlighted yesterday as clothing retailer Austin Reed informed the market with a profit warning, while fashion house Burberry said first-quarter trading had seen good sales. The different performances also had management implications, with Burberry saying chief executive Rose Marie Bravo had extended her contract for two years.

However, David Lowbridge, managing director for Austin Reed's British retail arm including the troublesome Country Casuals brand, has carried the can for the profit warning, and will leave the company. Austin Reed's shares dropped 6p, or nearly 5 per cent, to 127.5p, as the group said it would make a first-half loss because of slowing sales at its Country Casuals range.

Nick Hollingworth, Austin Reed's chief executive, said: "Country Casuals was a particular look that appealed to a particular woman who liked dressing up. Those women still like dressing up, but as if they were 35 not 55 and we have not changed enough." Austin Reed forecast a loss before tax and exceptionals, of GBP2.5 million to GBP3m for the six months to 14 August. That compares with a profit of GBP1.1m in the same period last year. In the 23 weeks to 10 July, sales of Country Casuals, which account for half of Austin's Reed's turnover, were down 10 per cent on a same floorspace basis.

Meanwhile, Burberry, whose colourful new lines include a pink trench coat, ponchos and mini capes, said revenues for the three months to end-June rose 14 per cent at constant exchange rates to GBP111m, with retail sales pushing 15 per cent higher to GBP60m.