Laura Ashley hit hard after first-half profits slide
Fashion and homeware retailer Laura Ashley has warned over annual profits after firsthalf earnings slumped due to lower sales and the weak pound.
The group, which has 161 stores across the UK, saw pre-tax profits tumble 45 per cent to £4.3 million for the six months to 31 December, with like-for-like retail sales down 0.5 per cent.
It blamed the weak pound as the “most significant single factor” causing the profits fall as it continues to be hit hard by sterling’s slide since the Brexit vote.
Laura Ashley said trading conditions had been “challenging” and “demanding” in its first half and forecast little improvement over the final six months.
Chair Khoo Kay Peng said: “The board have reviewed the first-half results and forecasts for the remainder of the year to 30 June, 2018 and, given the continued market challenges, considers that net pretax profit for the year will fall below market expectations.”