LAURA ASHLEY OUT OF FASHION AS PROFITS FALL

UPMARKET homeware and clothes retailer Laura Ashley reported a 72pc slump in profits as shoppers shunned its clothes.

Fashion sales fell 12.2pc at the group now mostly owned by Malaysian businessman Khoo Kay Peng, with overall revenue hitting £277m compared to £400.9m last year.

Results were skewed compared with the previous financial year which ran over 74 weeks, compared to 52 weeks for these results. Total like-for-like retail sales fell 3.1pc.

Peng said: ‘Trading conditions have been challenging for the year ended 30 June. The impact of weak sterling has contributed to the overall fall in profit.’ International franchises and licences are 7.4pc of group revenue.

The board is not recommending a final dividend, meaning the total dividend for the year to June 30 is 0.5p, compared to last year’s 2.5p.

Results were hit by the closure of 22 concessions inside Homebase. Decorating sales fell 5.9pc and furniture sales by 7.2pc. Sales from home accessories, such as lighting and bed linen, increased by 1.3pc.