Jacques Vert sees tougher market in UK

Womenswear retailer Jacques Vert today warned of tougher conditions on the high street as it reported a slowdown in sales growth.

The news came as the company, which also operates the Windsmoor, Planet and Precis brands, posted a 5% rise in like-for-like sales during the year to April 28.

However, it said sales growth dropped back during the 10 weeks since the period end amid a further tightening of the retail market, with like-for-like sales up by 1.2%.

Total sales in the year to the end of April rose by 5.4% to £114.9m (€169m), boosted by a strong performance from Planet – aimed at the over-30s professional market – helping to grow pre-tax profits from £2.2m (€3.2m) to £3.3m (€4.9m).

But margins slipped following the introduction of “significant” discounts as it battled with an increasingly competitive market.

Chairman Derek Lovelock said: “I am please to report a significant increase in profit which reflects a strong performance in what was a difficult market.”

Store numbers grew to 948 by the end of April, compared to 921 at the end of the previous year. The group now has more than 900 stores across the UK, with the rest in Ireland and Canada. It plans to open between six and 10 Planet stores in the current year.

In December, the company offloaded its wholesale division, including the Melka and Tenson brands, netting profits of some £1.8m (€2.6m).

Mr Lovelock said the move would allow the company to concentrate on growing its retail division, including developing its online operations.

Richard Ratner, retail analyst at Seymour Pierce, said the underlying figures were above expectations and pointed out the firm stands to benefit from current moves by department stores to improve the mix between ’classic’ and ’young fashion’, with its brands being offered more prime space than they have been in the recent past.

He added: “Looking forward, Jacques Vert is a very ’different animal’ from the company that it was 12 months ago. The balance sheet is now more substantial and almost debt free. Yet the rating still remains very low, despite the amazing job that Paul Allen and his team have done.”