Oasis delays summer sale as bad weather hits business

Leading fashion chain Oasis' summer sale was on ice today while its owner held out for some of the business lost to poor weather earlier in the year.

Mosaic Fashions said the pick-up in weather had helped spark a sales recovery but that it would still delay the annual sale at Oasis in order to maximise the level of full price sales of its summer ranges.

The move emerged as Mosaic blamed weather and the lack of a “must-have” fashion trend this year for a 3% fall in first quarter sales at Oasis.

Two of Mosaic’s other chains, Coast and Karen Millen, were less affected by the challenging trading conditions and achieved growth in the three months to the end of April of 18% and 45% respectively.

Sales across the group, which is majority owned by Icelandic fashion chain Baugur, were up 11% to £98.4m (€142.4m) but underlying earnings fell 11% to £10.1m (€14.6m) as margins at Oasis were affected by initiatives to control stock levels.

Chief executive Derek Lovelock said the first quarter of the year had been very difficult for fashion retailers in the UK, particularly in the younger market.

He explained: “Although Oasis hit the fashion trends of the season of colour, spots and dresses, the lack of a completely new look and unseasonable weather meant that our customers’ appetite for new clothing was much weaker than the prior year.”

The fourth strand of the business, Whistles, was also affected by the lack of a major trend as sales fell 12% on the same period a year earlier, when shoppers were flocking to take up the “boho look”.

He added that the company remained comfortable with expectations for low double-digit growth in underlying earnings this year.

Mr Lovelock is currently leading the merger of Mosaic with Rubicon Retail, the company behind Warehouse, Principles and the footwear operation Shoe Studio.

Last week Mosaic said it had signed a non-binding letter of intent to merge with Rubicon, with plans in place to complete the deal within three months. The new company is likely to a have a combined turnover of well over £800 million.

Mosaic currently has 254 stores and 409 concessions in eight European countries and the United States, as well as 117 franchise stores in 23 countries and 67 joint venture outlets in China.