Alexon margins slide in tough environment
07 July 2011 09:51
Womenswear retailer Alexon said today that it anticipates performance for the current year to be slightly down as it reported a slide in margins in the latest trading period.
The group also announced that it was exploring options for a "more appropriate capital structure" in order to progress its turnaround programme.
In the 22 weeks to July 2nd, the company, whose brands include Ann Harvey, Dash, Eastex, Kaliko and Minuet, said margins were "slightly down", with group like-for-like sales just 0.9% up.
In a statement, the company said: "This period incorporates a difficult start to the high summer sale reflecting lower footfall in June but is a creditable performance given the current market environment. Margins are slightly down, reflecting earlier promotional activity."
On the company's turnaround programme, Alexon commented: "We continued to make progress with our turnaround strategy during the period, which focuses on restructuring our store portfolio; continuing to develop our brand propositions including the roll out of new retail environments, the further acceleration of our e-commerce business and a much needed systems overhaul.
"We commenced our systems improvement, during the period with the installation of a new warehousing system.
"However, as announced at the time of the group's preliminary results on 28th April 2011, the combination of challenging market conditions and the reduction in revenues as a result of the December trading losses has impacted the group's ability to invest in the turnaround strategy.
"Accordingly, the group is actively exploring options for a more appropriate capital structure which will firstly reduce the debt in the business and secondly enable the group to invest in the next stages of the turnaround plan.
Such investment would be targeted towards the group's systems infrastructure and would take account of what is expected to remain a difficult economic and retail environment in the near term."
Retail news is updated every weekday and is provided courtesy of: 
