Store closures help Laura Ashley fashion profit rise

8th Sep 2011 07:36

Closing unprofitable shops helped homewares and ladies fashion retailer Laura Ashley post a rise in profits in the half year to 30 July.Pre-tax profits excluding exceptional items climbed to £7.3m from £5.7m over the same period the previous year. Total sales climbed by just 0.1% to £135.3m, but the closures of unprofitable shops helped drive like-for-like sales up by 3.5%. The interim dividend was doubled from last year to 1p.The company also said improved sourcing helped drive gross margins higher. "These results show that our multi-channel and international strategies are working well," said chairman Tan Sri Dr K P Khoo."These, along with our strong balance sheet and ongoing operational efficiencies, give me confidence, notwithstanding the continuing economic headwinds, that we will meet the board's expectations for the year."In the 31 weeks to 3 September, UK like-for-like sales growth was maintained at the first half level of 3.5%.Laura Ashley operates 137 mixed product stores, 54 home stores, 21 home concession stores, one gifts & accessories store and one clearance outlet.---RG