Retailer Laura Ashley has slipped into the red as group sales fall by 9.6%.
The group reported pre-tax losses of £14.2m for the year ended 30 June, compared with a £100,000 profit for the same period last year. This was despite a reduction in operating expenses of £600,000 to around £91m, off the back of lower store property costs.
Group sales fell 9.6% to £232.5m and like for like sales were down by 3.5%. Total UK retail sales where £222.9m, down 5.6%, due to the store closures and “considerable market uncertainty”.
Over the course of the year, Laura Ashley closed six stores and opened one, reducing total space by 3.6% to 639,000 sq ft. At 30 June it had 155 UK stores.
The retailer said it planned close five to seven more stores this years and open two as it continues to “optimise the store portfolio”.
The group also disposed of property in Singapore and its 49-bedroom The Manor hotel in Elstree, Hertfordshire, which has enabled it to “eliminate all long term debt” and put it “on a stronger financial foot for the years ahead”.
The brand has signed a licensing agreement with IMG to establish itself in China and expects its first store to open in Melbourne in 2020.
Chairman Andrew Khoo said: “The last twelve months have proved to be a difficult trading period for the group and indeed for the retail sector as a whole. As we look to expand our international licensing and hospitality business and optimise UK retail, we are confident in our business strategy which it to create a total lifestyle.”
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