28th May 2008 07:00
LAURA ASHLEY HOLDINGS PLC
Interim Management Statement
28 May 2008
In the first 17 weeks of our current financial year ending January 2009, total UK retail sales increased by +7.9 % due mainly to the increase in our retail selling space. The continued successful store expansion and realignment programme has led to the opening of 12 new stores and the closure of 2 stores in the UK during this period.
The uncertainty arising from the current economic climate and its effect on retail from weaker consumer spends coupled with the opening of our new stores impacting existing stores, have affected our LFL sales which were down by -7.6 % compared to the same period last year.
However, compared to last year, our margin rates have continued to improve by just below two percentage points.
Our franchising and licensing sales reported marginal declines compared to last year. Our Mail Order and Internet sales have improved by +8.1%, driven mainly by our growing Internet business.
Our Balance Sheet remains strong with £12.3 million of net cash at the end of the reporting period with no borrowings.
Despite the difficult trading outlook anticipated for the period ahead, we expect our profit before tax for the financial year ending 31 January 2009 to be broadly in line with brokers' forecasts. We will continue to focus on our store expansion and realignment programme, improved product offering and improving our operational efficiencies.
Enquiries:
David Cook Laura Ashley 0207 880 5100
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