Laura Ashley issues profit warning as interim profit drops

Laura Ashley reported a drop in pre-tax profit for the 26 weeks to the end of December, as it warned that profit for the year will fall below market expectations due to continued market challenges.

Pre-tax profit declined to £7.8m from £11m the year before, with total group sales at £146m from £149.8m and total like-for-like retail sales down 3.5%. Online revenue nudged up to £25.6m from £25m, while hotel revenue ticked up to £1.4m from £1.3m and the company announced an interim dividend of 0.5p per share, down from 1p the year before.

The company pointed to a failure to a failure to meet sales and margin targets and to maintain or increase market share, among other things. Chairman Tan Sri Dr Khoo Kay Peng, said: "Trading conditions have been demanding during the first six months of the year ending 30 June 2017. The board have reviewed the first half results and forecasts for the remainder of the year to 30th June 2017 and, given the continued market challenges, feels that net pre-tax profit for the year will fall below market expectations.

“Despite the well-documented pressures in the broader commercial environment, there have been a number of positives in the first half and the business is well placed to respond to the challenges ahead.

"We are committed to delivering the best possible multichannel experience for our customers. Looking ahead, the ongoing investment to enhance the online experience will add to the already rich heritage of this great British Brand and bring Laura Ashley to a larger and more international audience.”