(Alliance News) - Laura Ashley Holdings PLC on Thursday said it swung to a large loss in the most recent financial year due to a weak performance from Home Furnishing business and lower online sales.
Shares in Laura Ashley were down 5.1% at 1.74 pence in morning trade in London.
The clothing and homeware retailer reported a GBP14.3 million loss for the year ended June 30, having posted a GBP100,000 profit the year before.
Revenue dropped 9.6% to GBP232.5 million from GBP257.2 million. Total UK retail sales fell to GBP222.9 million from GBP236 million, hurt by six store closures and uncertainty in the market. Online sales dropped to GBP51.2 million from GBP59.7 million.
The company separates its UK business into Home Accessories, Furniture, Decorating, and Fashion. Of these, only Fashion sales were up - rising 4.2% - while the other three units saw drop in sales. This included a 10% drop in Furniture sales and 15% drop in Decorating sales.
Chair Andrew Khoo said: "The primary causes for the year-on-year drop in profit have been the performance of Home Furnishing and that of our website following a re-platforming exercise which took place in November 2018.
"We have focussed on the reasons why Home Furnishings have underperformed and have taken necessary steps to mitigate this, including adding new contemporary product to our ranges. We have taken active steps to listen to our customers and now believe that we are on an appropriate recovery path. We continue to invest in our website and are working with our online service providers to ensure that it is optimised to deliver an enhanced customer experience and to achieve the desired growth."
The company is expanding internationally and has signed a master licencing agreement with IMG to market and develop its brand in China. Laura Ashley is also planning to open its first Australian store in 2020.
"As we look to expand our international licensing and hospitality business and optimise UK retail, we are confident in our business strategy which is to create a total lifestyle experience," said Khoo.
No final or interim dividend has been recommended and no dividend was paid for its 2018 financial year either.
