12th Jun 2014 10:44
LONDON (Alliance News) - British homesware retailer Laura Ashley Holdings PLC Thursday said it saw a slight drop in sales in the first 19 weeks of its financial year, but said both its fashion and home furnishings recorded sales growth on a like-for-like basis.
Total retail sales were down 0.9% in the 19 week period ended June 8. However like-for-like sales were up 0.7%.
Back when the retailer released its full-year results in March, the company warned that the retail environment continues to be both competitive and challenging, but it had said it had seen an encouraging start to its current financial year, with like-for-like sales growth of 2% in the first two months of the year.
However, Thursday's announcement of like-for-like sales growth of only 0.7% for the 19 week period suggests that the retailer is being hit harder by a competitive trading environment in the UK.
The clothing and home furnishings retailer has been busy growing its international franchise business, expanding its product ranges, improving its systems, and enhancing its online business.
Laura Ashley said furniture accounted for 30% of sales from its UK business in the financial year ended January 25, followed by home accessories with 29%, decorating product 23%, and then its fashion clothing with 18%. It also said that 40% of its home furnishings sales were from products manufactured in the UK.
In its statement Thursday, Laura Ashley said it has opened two retail stores so far this year and closed three. Both store openings were in Homebase stores, owned by Home Retail Group PLC - one in Waltham Cross and the other in Bishop Stortford.
The company said its franchise business continues to grow, having added six stores to its portfolio since the start of the year, with a total to 292 shops in 31 countries. During the period its opened 5 new stores in Japan and four in South Korea, but closed one store each in Taiwan, Belgium and Bulgaria.
During the period, the company also launched a French-language website. It said a German-language website will be launched soon.
Laura Ashley shares were down 4.7% at 26.45 pence Thursday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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