Furnisher and fashion retailer Laura Ashley yesterday confirmed its trend-bucking position on the UK’s high streets, after announcing an autumn sales hike.
The high-end chain, known for specialising in floral prints and sumptuous interiors, said like-for-like revenues in the 19 weeks to December 8 had risen 4.9% on the same period last year.
Web-based sales rose by more than 22%, with executives highlighting an “instrumental” new mobile webshop offering the firm’s entire product range, and an increase in overseas deliveries.
Parent Ashley (Laura) Holdings, which in September reported interim pre-tax profits of £8.3m for its first half, said it expected gross margins to be slightly below the level of those seen during the second half of last year.
But analysts saw this as a positive step, following a spring and summer season when margins fell by 2.5% because ofpoor product mix and a high level of discounting.
The group is continuing its work to engage franchise partners in China, India and South America.
Meanwhile, five UK stores closed this year, with three new sites opening.
Freddie George at Seymour Pierce said the update showed a company performing “ahead of expectations”.
He is predicting full-year profits of £20 million.
“Following this update, we believe the company is well on track to achieving our FY13 pre-tax profit forecast of £20m, although we are aware that there are still some important trading weeks to come,” he said.
Laura Ashley has a “great opportunity” to exploit its reputation by expanding into developing markets abroad, Mr George added.
He said the group had managed to continue the positive momentum which allowed it to grow sales of home accessories by more than 10.4% and decorating ranges by 5.7% during the six months to the end of July.
business@thecourier.co.uk