LONDON (Alliance News) - John Lewis of Hungerford PLC Friday reported an operating loss in the first half of its financial year, the first in that period for three years, which it blamed on investments in the business and a slight drop in revenue following the "unplanned departure" of three of its top-performing sales people.
It also warned that it doesn't think it'll be able to make up the shortfall in the traditionally stronger second half of the year and is therefore expecting to report a full-year loss.
The kitchen, bedrooms and furniture retailer reported an operating loss of GBP174,000 in the six months to February 28, compared with a GBP66,000 profit in the same period the year before.
It said that while the first half of the financial year is traditionally its weaker trading period, it is disappointed with the results, which reflect a number of investments it made to support the delivery of its strategic plan to produce continued turnover growth.
However revenue declined, albeit only slightly, to GBP3.5 million from GBP3.6 million, which the group said was entirely down to a decline in like-for-like sales in its existing estate.
The unplanned departure of three of its highest-performing sales people from its top showroom hit revenue in the business, and as a consequence, the company had to move senior staff into the showroom, which had a knock on effect elsewhere in the company, John Lewis of Hungerford said.
"We are making some progress in addressing these staffing changes, with a number of high calibre people recently recruited," the retailer said.
"Although the second half year is traditionally our stronger trading period we now consider it unlikely that the losses in the first half will be recovered in full and so expect to report a loss for the full year," Chairman Malcolm Hepworth said in a statement.
"The business continues to look forward with confidence that once internal staffing issues are resolved we will be able to return to profitable sales growth," he added.
Shares in John Lewis of Hungerford plummeted 14.3% at 0.750 pence Friday morning, having peaked at 0.895p earlier.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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