Laura Ashley annual fashion sales decline 3.9 percent

For the 74 weeks to June 30, 2016, total Group sales were 400.9 million pounds (522.2 million dollars) compared with the 53 week period last year. Like-for-like sales grew by 4.1 percent over the same period. However, fashion category sales that includes adult fashion, fashion accessories and perfumery decreased by 3.9 percent over the same period last year with like-for-like sales up 2.2 percent.

Commenting on the results, Tan Sri Dr Khoo Kay Peng, Chairman, said, “Continued like-for-like growth in the UK market, boosted by the good performance of our digital channel, is encouraging. I am happy that the company has signed a new licence partner for Australia and am confident that the business opportunity there will be optimised. Such partnership opportunities, in new territories, will continue to be explored and developed.”

Performance highlights of the period under review

Group profit before taxation, excluding exceptional items, was 25.8 million pounds (33.6 million dollars) compared to 22.9 million pounds (29.8 million dollars) in 2015. The Board has recommended the payment of a final dividend of 0.5 pence per share. This will take the total dividends paid for the 74 week period to 2.5pence.

Ecommerce sales increased to 73.5 million pounds (95.8 million dollars). Like-for-like ecommerce sales grew by 15.7 percent. Total UK retail sales of 363.2 million pounds (473.5 million dollars) were recorded during the period. Total ecommerce sales totalled 73.5 million pounds (95.8 million dollars) during the period. On a like-for-like basis, sales grew by 15.7 percent.

As at June 30, 2016, the property portfolio in the UK comprised 192 stores including 117 mixed product stores, 48 home stores, 25 concession stores, one gifts & accessories store and one clearance outlet. During the reporting period, five stores were opened and eighteen were closed.

Franchise and licensing revenues below expectation

Contributing 7.7 percent of total Group revenue, the company had 252 franchised stores in 29 territories worldwide. Franchise and licensing revenue of 30.7 million pounds (40 million dollars) was recorded during the period to June 30, 2016, below the company’s expectation due to the performance of a sluggish Japanese market and also due to continued political instability and economic difficulties in other territories.

Picture:Laura Ashley