Fashion retailer warns of trading pressures next year
Sales at fashion retailer Elle slipped 14 per cent for the 26 weeks to July 30 and fell 13.5 per cent like for like, as tough trading conditions took their toll on its performance.

David Brock, chairman of brand owner Actif Group, said the retailer did not anticipate any improvement in market conditions for the remainder of the financial year.

He added: 'The timing of this consumer downturn has masked some of the improvements the company is making and the board is encouraged by the early progress Catherine Scorey, the recently appointed commercial director, has made in revitalising the Elle ranges.'

Weak levels of demand and pressures on the cost base are hampering profitability, Brock explained. The board expects these conditions to continue through next year.

In response, the board has been implementing plans to reduce costs by£750,000 a year - about 20 per cent of central overheads. A reduction in the head office workforce was completed last month.

The board now expects the group to make a loss before tax of about£450,000 for the 12 months to July 30.

Actif Group chief executive Mark Evans said: 'We have taken quick and decisive action to implement a business reorganisation plan, to ensure the group is in a strong position to ride out this consumer downturn.'

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