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Jacques Vert warns on lower profit

By FashionUnited

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Jacques Vert, the owner of fashion brands such as Planet and Precis, has become the last

fashion retailer to warn on profits for its full year. The group expects profit before tax to be lower than forecasted.

The women's fashion retailer’s shares fell 9pc in early trading following a profits warning which blamed unseasonably warm weather, waning consumer demand and one-off costs.

"Performance has been impacted by a combination of weaker consumer confidence and the unseasonally warm weather, which has had a material effect on sales of outerwear, principally coats. Consequentially, margins have come under pressure as we have responded to promotional activity in the market and looked to stimulate demand so as to keep stock levels under control, " they said in a note released on Monday.

Like many retailers, Jacques Vert has had to offer its customers a high percentage of discounted products in order to try and stimulate sales. Indeed, across the retail industry money-off deals have been commonplace throughout the summer and are sure to continue in the run-up to Christmas.

“At the AGM on September 30th 2011 the group reported an encouraging start to the new financial year, with like for like sales 0.2 per cent higher than the previous year in the 22 weeks since May 1st 2011,” said yesterday’s statement. The group said the group had performed "creditably" in the seven weeks since its AGM on September 30 as sales for the first 29 weeks of the financial year are 0.8pc ahead of last year, but like-for-like sales are 0.3pc lower than last year.

“However, at the same time, we also noted a recent weakening trend in sales and margin in line with the general retail market. In the seven weeks since the AGM the group has continued to perform creditably, with a modest decline in sales over this period.” Work to improve Jacque Vert’s supply chain operations is expected to be completed by the end of April 2011, which will mark the end of the group’s 2011/12 fiscal period.
Jacques Vert