Ashley on the slide as sales dip
SHARES in Laura Ashley slumped 15% to 19 1/4p on news of a sales downturn in its faltering fashion side, best-known for its floral prints. There will again be no dividend. Shareholders last received a return from the group five years ago.
Group profits for the year to 26 January crept ahead from £8.4m to £8.6m one-off items, thanks to booming sales on the growing home furnishings side, which now accounts for about two thirds of the £276.8m sales total.
As fashion sales edged up by 1% like-for-like, home furnishings surged by 18%. There were 'dramatic increases' in a number of product lines, including paint and cabinet furniture.
But there has been a downturn this year, with fashion sales going into reverse, recording a like-for-like decline of 5% over the past 13 weeks. Home furnishings advanced by 8.7%.
Chief executive KC Ng said home furnishings would be the 'key growth drive' over the coming year and the group plans to open up to 50 more stand-alone home furnishings stores.
Trading has been hit by the downturn in the tourist trade, and a poor performance in the group's continental European and American outlets. The group is 43%-owned by the Malaysian group MUI.
