The department store group said trading had improved significantly since its last trading statement in September, when it reported a 7 per cent like-for-like fall. For the 23 weeks to January 7, like-for-like sales were down 3.6 per cent, but total sales were up 18.1 per cent, reflecting House of Fraser's acquisitions of Beatties and Jenners.
Chief executive John Coleman said sales growth was being achieved in high margin areas, such as accessories and menswear. He added that gross margin is running ahead of last year.
However, he warned that the year ahead would be challenging, and said: 'We expect trading conditions to be difficult for at least the first half of 2006 and, in spite of our continuing focus on costs, we expect some additional cost pressures in the next 12 months.'
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