Trading owner Alexon warns of profit disappointment
Bay Trading owner Alexon today added its name to the growing list of retailers feeling the pressure from the slide in consumer confidence.
The Luton-based group, which also sells the brands Alex, Dash and Ann Harvey, said it was unlikely that pre-tax profits for the year to the end of January will reach current market expectations.
It said like-for-like sales in the 18 weeks to December 1 were 7% down on the prior year, worse than the 5% fall reported in September.
Assuming trading conditions continue to be difficult, it said pre-tax profits were likely to be in the range of £11.5m (€15.9m) to £12.5m (€17.3m), compared with previous analysts’ consensus forecasts of £15.4m (€21.4m). The company reported an equivalent figure of £12.4m (€17.2m) last year.
It added: “Whilst next year is likely to prove equally challenging we are confident that the measures taken in the last 12 months to strengthen our portfolio of brands will stand us in good stead for the future.”
The company sold its Dolcis shoes business last December in order to concentrate on turning around its menswear and Eastex-to-Dash label arms.
It said today it had been successful in protecting profitability, with margins 1.7% higher than last year and stock levels currently lower than last year. It expects to end the year with terminal stocks “well under control”.
Alexon joined French Connection and Moss Bros in warning that profits were likely to be lower in the current financial year. Shares fell 18%, leaving the stock well down on its 250p peak for the year, at 88p.
