Laura Ashley sales weaken in tough climate

Home furnishings and fashion retailer Laura Ashley today said UK like-for-like sales were down almost 10% in the tough trading climate.

The group, which has 231 stores in the UK and seven in Ireland, said the impact of its store opening programme on neighbouring outlets also affected the sales performance for the 20 weeks to December 13.

Despite the “extremely challenging” outlook, the company said ongoing efficiencies and other measures meant it was on track for a performance in line with its expectations over the 2008 financial year.

Total UK store sales increased by 9.7% in the 20 weeks due to an increase in selling space, but the figure was down 9.9% based on those stores trading for more than a year. Half-year figures released in September showed a like-for-like decline of 8.1%, while underlying profits were up 13% to £4.5m (€4.8m).

As part of a strategy to realign its store portfolio, the company opened nine new stores in the 20 weeks and closed three in the UK.

Home accessories account for around 28% of sales at Laura Ashley, with furniture generating approximately 26%, decorating 24% and fashion 22%.

The company said internet sales were up by 55%, but this was offset by a 26% decline on mail order business.