Bay Trading owner Alexon sees sales drop further

The owner of fashion brands Kaliko and Ann Harvey today said like-for-like sales were down 11% after trading became “increasingly challenging”.

Alexon, which also operates as Bay Trading and Minuet, also reported weaker margins because of increased promotional activity and the need to control stock levels ahead of the key spring selling season.

Shares fell 13% as one City firm increased its forecast for Alexon’s full-year losses from £1.1m (€1.3m) to £2.8m (€3.3m) for the year to January.

Panmure Gordon stockbrokers estimated like-for-like sales fell 13% in October and November, leading to today’s 11% decline for the 17 weeks to November 22.

Analyst Philip Dorgan added: “Sales are poor and we expect losses for this year and the foreseeable future.”

Alexon said the current trading figures were “slightly below” its expectations, but it stressed that the outcome for full year was still dependent on the Christmas trading period.

It added: “The general outlook for the consumer environment in 2009 is widely expected to be very challenging, however we are confident that the strategy we are implementing will strengthen the business going forward.”

The company said a recently strengthened management team was focusing efforts on achieving “brand clarity” and improving the supply chain.

Since joining the Luton-based group in the summer, chief executive Jane McNally has drafted in Jane Eskriett – previously womenswear director at New Look and Primark – to carve out a new niche for the brand.

The firm currently has more than 1,000 outlets across Europe, many of which are concessions within department stores.