Fashion chain Monsoon today said it had a good Christmas, with sales up 11%, but forecast tougher trading conditions to come on the high street.
The group, which owns 277 Monsoon and Accessorize shops in the UK and Ireland, said like-for-like sales for the four weeks to 21 December rose 2% on the same period the previous year, while in the two weeks to 4 January, sales rose 11%.
Chairman Peter Simon said: “It was quite a good overall figure. We have been doing well in evening wear, casual wear and children’s wear as well as Accessorize.”
He said the group had maintained its margins during the period.
And he added: “I’m not that hung up on like-for-like figures, but it is the profits which matter.”
But Monsoon said it faced the prospect of “more challenging market conditions on the high street”.
Simon said: “I think it is going to get tough in the next quarter but at the end of the day it comes down to the way you run your shops and way you operate them.”
The update came as Monsoon reported buoyant half-year figures.
Pre-tax profits for the six months to 23 November 23 rose 9% to £17.7m while turnover was 8% higher at £107.7m.
Simon said: “These results underline our ability to increase profits under more difficult trading conditions.”
The group is aiming to continue expanding its store chain, with plans to open a further 10 to 15 shops in the UK and Ireland in the next half year, and 20 to 30 international stores.
At present the group has 277 shops in the UK and Ireland and 90 stores overseas.
Shareholders will be paid an interim dividend of 1.5p, the same as this time last year. Shares in the group, however, slipped 2% to 109p.
Monsoon also today announced its finance director Andrew May would step down in six months’ time after 22 years with the group.
EGi News 13/01/03
