Laura Ashley reports better than expected growth in sales

Fashion and furnishings retailer Laura Ashley reported Friday growth in retail sales for the first 19 weeks of the second half that came in marginally ahead of analysts' forecasts.

Fashion and furnishings retailer Laura Ashley reported Friday growth in retail sales for the first 19 weeks of the second half that came in marginally ahead of analysts' forecasts.

The company said like-for-like (LFL) sales were up 4.9% for the period ended December 8th (Seymour Pierce forecast: 4.0%), with a total retail sales increase of 4.2% year-on-year.

Laura Ashley's e-commerce sales grew 22.6% , driven by the introduction of a mobile site offering the complete range of the company's products and by increased overseas deliveries.

The result was slightly stronger than the first half rise of 21.4%, buoyed by improvements to the website in autumn 2011.

Encouragingly, gross margins were expected to be only marginally lower in the year after dropping 2.5% points in the first half when it was affected by adverse product mix and an increase of discounting, according to Seymour Pierce Research.

The broker also highlighted the high performance achieved by the company in its core categories over the past three years. That momentum continued, with home accessories up 10.4% and decorating up 5.7% in the first half 2013 sales report.

Seymour Pierce was predicting a fiscal year 2013 pre-tax profit of £20m for the retailer.

Laura Ashley had opened five and closed three stores during the financial year to date.

Shares were up 0.92% to 27.50p at 09:50 on Friday.

RD

Recommended

Best junior stocks and shares ISA platforms
Isas

Best junior stocks and shares ISA platforms

A junior stocks and shares ISA is a great way to save for your child tax-efficiently. But it can be confusing deciding which investment platform to ch…
28 Mar 2023
The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into
2 Mar 2023
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
27 Feb 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023

Most Popular

The MoneyWeek portfolio of investment trusts – March 2023 update
Investment trust model portfolio

The MoneyWeek portfolio of investment trusts – March 2023 update

A decade ago we set up the MoneyWeek portfolio of investment trusts. It proved a success, says Andrew Van Sickle.
27 Mar 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Ofgem’s price cap is now predicted to fall below £2,000, based on average typical use, from July, for the first time since 2022. We have all the detai…
21 Mar 2023
11 investment trusts for inflationary times
Investments

11 investment trusts for inflationary times

Inflation eats away at the value of your money, but these investment trusts can help you grow your wealth.
28 Mar 2023