Laura Ashley has reported a full-year pre-tax loss of £14.3 million, down from a profit of £100,000 – a loss which chairman Andrew Khoo blamed on underperformance in its homeware division.
In the 52 weeks to June 30, the retailer’s loss before tax and exceptional items was £9.8 million, down from a profit of £5.6 million the previous year.
Total like-for-like retail sales for the year were down 3.5 per cent, while total group sales fell to £232.5 million, down from £257.2 million the previous year. Laura Ashley also saw its online sales fall during the period to £51.2 million, down from £59.7 million.
Meanwhile, Khoo said the main cause of the profit drop was thanks to the retailer’s homeware arm.
“We have focused on the reasons why home furnishings have underperformed and have taken necessary steps to mitigate this, including adding new contemporary product to our ranges. “We have taken active steps to listen to our customers and now believe that we are on an appropriate recovery path,” he said.
However, Laura Ashley’s fashion business saw like-for-like sales grow 9.2 per cent, which Khoo said was a result of improved designs. Nevertheless, the retailer has already issued two separate profit warnings since January.
