Clothing retailer Austin Reed today said its head of retail had stepped down after weak trading at its Country Casuals chain hit sales.
Austin Reed said David Lowbridge, who joined the group when it acquired Country Casuals in 1998, had resigned from executive duties and would leave the company and board in due course.
The group said a 5% fall in same-store sales was due to the under-performance of the Country Casuals womenswear range, which had deteriorated further since the company reported figures at its annual meeting in May.
The Thirsk, North Yorkshire-based group said like-for-like sales at Country Casuals fell by 10% in the 23 weeks to 10 July.
It said in a trading statement: “This performance is in part associated with general trading difficulties in the quality classics womenswear sector but also reflects the lack of appeal of our current ranges.”
In contrast, the main Austin Reed chain – which includes both menswear and womenswear – achieved a 3% hike in same-store sales during the same period.
The group said it now expected pre-tax losses before exceptionals of between £2.5m and £3m in the half year to 14 August, compared with profits of £1.1m last time.
The company announced a business review at its annual meeting in May after tough market conditions affected trading at Country Casuals.
In November it “significantly” lowered profit expectations, blaming disruption from the revamp of its flagship Regent Street store and the impact of the Iraq was and Sars.
Today the group said the review had identified a number of areas for improvement, including the closure of Country Casuals in Canada, revised supplier payment terms and a review of costs.
These changes are expected to generate benefits of £500,000 in the second half of this financial year, although they will add £3.5m of exceptional costs in the current financial period.
The company operates 49 Austin Reed stores and 41 concessions, as well as 66 Country Casuals outlets and 140 concessions.
More information on the review is due to be given when interim results are announced in October.
Lowbridge joined Country Casuals in 1987 and became managing director when it floated on the stock market in 1992.
He joined Austin Reed when it took over the group in 1998 and became managing director of the retail section in April 2003, making him responsible for the retail operations of both Austin Reed and Country Casuals.
He also spent three months as acting chief executive before the appointment of Nick Hollingworth in April this year.
Hollingworth said Mr Lowbridge was leaving because his role as head of both brands was disappearing from the business.
“There wasn’t another suitable role in the business so he left,” Hollingworth said.
Shares fell by 5% today, 7p to 126.5p.
References: EGi News 19/07/04
