Fashion-to-furnishings retailer Laura Ashley today announced a return to profit despite challenging trading conditions across the business.
The group - best known for its floral fabrics - said annual profits before tax and exceptional items were £3.1 million sterling, as sales at its furnishings arm continued to offset a decline in clothing.
However, turnover fell to £283.5 million from £292 million previously, with £1 million of its profits coming from property transactions.
Laura Ashley, which has been pulling out of its European operations, began a turnaround programme last year after sliding into the red with losses of nearly £5 million. It said it had now stabilised the business and expected a better performance in the current financial year.
Like-for-like sales in the 11 weeks to April 11th rose by 2.4 per cent, although fashion sales were down 12.20 per cent in the period.
Laura Ashley started an overhaul of its fashion division last summer by refitting stores and introducing new product ranges.
Fashion sales were down 1 per cent across all the company's stores in the 53 weeks to January 31st and slipped 1.9 per cent on a like-for-like basis during the year. The group said this partly reflected its decision to give more space to gifts and home accessories over the Christmas period.
Sales of furnishings, which now account for 70 per cent of revenues for the London-based group, rose 12.5 per cent during the year and were up 9 per cent on a like-for-like basis.
Although the company said the home furnishings market was becoming more competitive, it said it was broadening its range of products to differentiate it on the high street.