Monsoon caught in trading downturn

Retailer Monsoon today reported a fall in sales and profits after it struggled to attract shoppers amid increased competition during the first six months of the financial year.

Tough trading conditions, both on the high street and online, saw the group post pre-tax profits of £24.2m (€36.7m), a fall of 5%, for the six months to November 25.

Like-for-like sales at the group, which also owns Accessorize, drifted 6% compared to an increase of 4% in the previous year.

Furthermore, there was no let up for the firm in the run up to Christmas as like-for-like sales continued to decline, down 8%, in the eight weeks to January 20.

Monsoon said total sales for the first half grew 17% to £265.9m (€390.1m) but this was driven by new store openings which, in turn, would impact costs.

By the end of the six months store numbers in the UK and Ireland grew to 402 from 397 at the end May, while international stores grew to 400 from 358.