Monsoon sales slow down
Clothing retailer Monsoon today said it was no longer resilient to the retail slowdown as it revealed a slowdown in sales over summer.
Monsoon, which also owns Accessorize, said like-for-like sales in the 17 weeks to September 24 were up 8% although this masked growth of only 3% in the final 10 weeks of the period.
Shares in Monsoon fell 6% on the news and comments from chairman Peter Simon that the outlook in the run-up to the key Christmas period was uncertain.
Mr Simon told the annual meeting of the company: “While we are confident in the strength of Monsoon’s products and brands, it was inevitable that we would begin to notice the effects of the slow down.”
Monsoon has been one of the leading lights of the retail sector this year, with teenagers and young women continuing to spend on fashion despite cutting back elsewhere.
Analysts have applauded the strategy of mid-market retailers of keeping ranges fresh by bringing in new designs in the middle of a season and ensuring prices are affordable.
Despite the recent slowdown in same-store sales, Monsoon said its total sales in the first 17 weeks of its financial year were 39% ahead of the same stage of 2004.
This compares favourably with brands owned by Mosaic Fashion which published half-year results yesterday showing gains at Oasis and Coast of 13% and 40% respectively.
Monsoon boosted its trading space by 30% when it bought 47 former Etam sites in April. This will increase the number of Monsoon and Accessorize outlets in the UK and Ireland to around 380 once the stores have been converted.
