Laura Ashley UK sales drop 4.5%

3rd Jun 2011 07:23

Fashion and homewares retailer Laura Ashley said UK sales fell 4.5% in the 17 weeks to 28 May 2011 as it closed more unprofitable stores and expects to post full year results in line with expectations.The retailer, known for its floral style, said like-for-like sales fell 1.3% while total UK sales for the first 17 weeks of the current financial year fell by 4.5%. "The decline in total sales was largely due to the closure of unprofitable stores and the continuing store realignment programme," the retailer said.The group currently operates 214 stores in the UK and the Republic of Ireland. During its last financial year ended 29 January 2011, 16 stores were closed. Another 3 stores have been closed in the current financial year.Laura Ashley said sales picked up in the last 9 weeks of the interim period and while its store performance declined, on-line sales improved by 6.7% for the 17-week period.Meanwhile the group's franchising and licensing business continues to expand. It now has 236 franchise stores and it hopes to boost its global presence through more international partnerships.Looking ahead the group said, "The continued international growth of the brand, strong product offering, built-in operational efficiencies and robust balance sheet will provide a firm base for the company to meet its challenges this year."CJ