Jacques Vert warns on FY profit

Women's fashion retailer Jacques Vert has warned that pre-tax profit for the year to end April 2012 will be below its expectations as margins and one off costs impact results.

In the seven weeks since its AGM in September the special occasionwear retailer said it has continued to perform creditably, with a modest decline in sales over this period.

Sales for the first 29 weeks of this financial year are 0.8% ahead of last year while like for like sales are 0.3% lower than the previous year.

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However its performance has been hit by, "a combination of weaker consumer confidence and the un-seasonally warm weather, which has had a material effect on sales of outerwear, principally coats."

Margins have also come under pressure as it increases promotional activity to stimulate demand and keep stock levels under control.

The aim-traded group said it will take various one-off costs as it implements an up-grade to its IT systems and consolidates its warehouses into a single site.

While the new systems will deliver significant operational efficiencies and cost savings going forward it will also result in higher costs in this financial year compared to the previous year.

In September it noted an encouraging start to the new financial year, however, it also noted a recent weakening trend in sales and margin in line with the general retail market.

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