Laura Ashley Holdings interim profit dips as revenue falls

Home furnishing and fashion retailer Laura Ashley Holdings reported a slight dip in interim profit, as revenue was hit by sluggish international sales.

In the 26 weeks to 1 August the group posted a 1.1% year-on-year decline in pre-tax profit to £8.4m, while revenue declined 3% to £139.7m.

However, like-for-like retail sales and online revenue rose by 7% and 4.5% year-on-year respectively, as hotel revenue surged 44%.

The London-listed company posted an 8.8% increase in furniture sales, with like-for-like sales in the division rising 10.4% year-on-year, while revenue in the home accessories division grew 8.2%.

Decorating sales also rose 2.1% year-on-year, while the fashion arm fared slightly worse, as revenue fell 5%, although it climbed 0.6% on a like-for-like basis.

The company, however, reported a slump in international franchise and licensing revenue, which tumbled 31.5% year-on-year due to a weaker Japanese market and geopolitical tension in Ukraine and Russia.

Meanwhile, Laura Ashley Holdings said like-for-like sales in the five weeks to 5 September was up 5.7% year-on-year.

"We are encouraged as we enter the second half of the year,” said group chairman Tan Sri Dr Khoo Kay Peng.

“We will continue to work with our overseas franchisees to ensure that we maximise the international opportunities for our franchise partners and the group.

“Development and improvement of our digital platform, which has been a core group strategy over recent years, will remain a key focus.”

Laura Ashley shares were up 0.72% to 27.95p at 0931 BST on Wednesday.