British retailer Laura Ashley has reported a whopping 98 per cent fall in annual profits amid ‘challenging’ retail conditions.
In the year to 30 June, annual pre-tax profits fell to £100,000 from £6.3m the previous year. While total like-for-like retail sales dropped by 0.4per cent but clothing sales rose by 9.7 per cent.
Chairman Khoo Kay Peng told media he was “disappointed” by the fall in profit but was “encouraged” by the growth of the online business and that the firm would be launching a new digital platform in the weeks to come.
“Laura Ashley’s brand is built on beautifully designed, high quality products. Whilst the trading environment will continue to be challenging, we remain resolutely confident in the underlying strength of this much-loved brand, in its relevance for today’s consumer and in our strategies to both maintain and develop the brand and the company,” he said.