Laura Ashley figures reflect positive UK retail sector
Full-year figures from Laura Ashley came in with a profit of £10.1 million against £9.6 million in the corresponding period last year. The company also confirmed that like-for-like sales were up 4.6% in the eight weeks to March 27 which has had a positive impact upon the share price today. So does this renewed optimism bode well for the UK retail sector?
Despite the fact that Laura Ashley has reported improved figures and indeed suggested there is more growth to come in the short term there are still many people concerned about the UK retail sector. Pressure from financial restraints in the home, uncertainty in the employment market as well as ever-growing competition from the online arena, are impacting upon the traditional UK retail sector.
It will be interesting to see whether the next batch of profit announcements from the retail market follow the same track as Laura Ashley and whether other chief executives are as positive as Laura Ashley appears to be. On the downside, the company reduced its dividend by 20% although there are plans to roll out the name across the world which will obviously require significant investment.
Confidence in the UK retail sector is vital to the recovery of the overall economy and we await further indicators with bated breath.
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