Pre-tax profit at Laura Ashley dropped 44% to £4.3m for the 26 weeks to 31 December 2017, as the weakness of sterling put heavy pressure on its margins.
The business said it now expects its pre-tax profit for the full year to fall below market expectations, although it did not give further details.
Total group sales fell by 7.7% year on year to £134.7m, with total like-for-like retail sales down 0.5%.
Online revenue rose 5.1% to £26.9m, and Laura Ashley announced plans for a new digital platform in the coming months to improve its functionality.
During the period, it terminated its licensing agreements with Aeon Holdings in Japan, Taiwan and Hong Kong, instead aiming to grow online in the region. A new partnership in Thailand and a continuing Chinese presence online now underpin its international strategy.
The company also announced plans to license its hotel concept internationally.
“Trading conditions have continued to be challenging during the first six months of the year,” said Laura Ashley chairman Tan Sri Dr Khoo Kay Peng. “The impact felt due to the weakening of sterling, year on year, was the most significant single factor in the fall of profit before tax.”
You might also like...
Laura Ashley warns full-year results will 'fall short'
Laura Ashley has warned its full-year performance will fall short of expectations after it failed to make a profit in the first half.
Profits edge up at Oliver Bonas
Pre-tax profit at Oliver Bonas edged up by 2.8% to £4. 2m in the year to 31 December 2017, compared with the previous year.
Laura Ashley defends fashion offer
Laura Ashley’s chief financial officer and joint chief operations officer, Sean Anglim, has stressed the strength of the lifestyle retailer’s fashion offer, despite falling profits and turbulent market conditions.
Debenhams inches closer to CVA
Embattled department store Debenhams is reported to be moving closer to a company voluntary arrangement (CVA), as it holds talks with landlords and banks.
Have your say
You must sign in to make a comment
Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.