Laura Ashley's fashion business picks up as FY profits rise

27th Mar 2014 07:44

Upmarket fashion and homeware retailer Laura Ashley said its troubled clothing business had improved as it reported higher annual profits.Laura Ashley said like-for-like sales in its fashion arm, which fell 6.7% in the first half of the year to January 25th, dropped by a better 3.8% in the second half and decreased by 6.5% for the year as a whole. Sales rose 1.5% in the fourth quarter."We feel confident we have addressed the challenges faced during the past 12 months with our fashion collections and have a clearer understanding of what our customers demand in quality, price and style," the group said.Annual pre-tax profits including one-off items rose 2% to £20.5m, but total group sales fell 1.4% to £294.5m and full-year retail like-for-like sales were down 0.4%.Furniture sales fell by 1.4% but home accessories and decorating, such as curtains, blinds, paint and wallpaper, rose by 0.8% and 1.9% respectively.The group's international franchise business, including 286 franchised shops in 32 countries, increased revenue 4.2% to £28.2m.Ashley said group like-for-like sales rose 2% in the first two months of this financial year.Chairman Tan Sri Dr. K P Khoo said: "This is an encouraging start to the year and we believe this progress can be maintained."The total annual dividend rose to 3.5p per share from 2p a year ago. Shares rose 2.25p to 26p at 08:05 in London.PW