Laura Ashley profits soar but like-for-likes slide

Total group sales climbed 5.6 per cent to£237.6 million for the year to January 26. UK retail sales were up 7.2 per cent to£187.2 million, but like-for-likes fell 8.7 per cent, or 5.9 per cent when accounting for the store-realignment programme.

Pre-tax profit soared 62.3 per cent to£19.8 million and margins improved 2 percentage points during the period.

Laura Ashley’s homewares sales were up 5.5 per cent during the period – a like-for-like decline of 10 per cent. Furniture sales were up 0.5 per cent – a decline of 12.8 per cent like-for-like.

Fashion sales rose 7.7 per cent, equating to a 4.4 per cent like-for-like drop, and decorating was up 6.9 per cent, a like-for-like fall of 5.6 per cent.

During the year, Laura Ashley increased its store count to 208 stores, up from 189 the previous year.

The retailer invested£10.9 million in the business, including£1million in a new warehouse management system.

In a statement, Laura Ashley said online sales were “growing” and that it was improving its sourcing and product mix.

Laura Ashley chairman Tan Sri Dr K P Khoo said: “Although our like-for-like sales have declined, we do not view this as a cause for concern. Our total sales and margin rate have both seen continued improvement.

While we are confident that our strong brand and product offering are compelling, we remain cautious about the general trading conditions in the retail market for the year ahead.”