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19 Dec 2008 07:00
LAURA ASHLEY HOLDINGS PLC
Interim Management Statement
19 December 2008
In accordance with standard practice, Laura Ashley Holdings Plc today announces its Interim Management Statement for the period to 13 December 2008.
In the first 20 weeks of the second half to 13 December 2008, total UK store sales increased by 9.7% against the same period last year due to the increase in retail selling space. During this period, as part of our strategy to realign our store portfolio, we opened 9 stores and closed 3 stores in the UK. We now currently have 231 stores in the UK.
Tough trading conditions in the current economic climate, combined with the effects of new store openings on existing stores, have affected LFL UK store sales which were down -9.9 % in the first 20 weeks of the second half compared to the same period last year.
Our franchising and licensing network continues to grow with several agreements having been concluded with various franchise and licensing partners. Our Asian franchise partner has recently begun a programme to open 80 stores in China over the next 5 years whilst our new Middle East partner has committed to expanding the brand presence over the next 5 years.
There was an overall improvement in sales from our Direct channel with Internet sales increasing by 55% partly offset by a decline of 26% on our Mail Order business.
Although the outlook remains extremely challenging, we will continue to focus on increasing revenue generation through our various channels, improving operational efficiencies, differentiating our product offering and continuing our store realignment programme subject to our stringent property selection criteria. As a result of these actions, we expect trading to be broadly in line with the Board's expectations.
Enquiries:
Rebecca Navarednam Laura Ashley 0207 880 5100
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