Losses widen at Austin Reed
25 October 2011 09:37
Austin Reed reported a sales rise of 3% to £121 million for the year to the end of January but pre-tax losses increased. The company posted a £2 million pre-tax loss compared to the £1.3 million loss seen in the previous year, blaming "onerous lease provisions".
In the company's latest accounts a statement said: "The group continues to be exposed to the risks of the economic downturn in the UK which has led to reduced consumer demand and reduced income.
"The economic success story in China continues to cause inflationary pressure. Also, although the increase in the price of cotton has abated, other raw material prices, notably wool, continue to increase, creating upward pressure on prices in the Far East where we source much of our product. The company will continue to balance the need to offer a quality product at an acceptable price whilst maintaining margin."
Earlier this year, Austin Reed vacated its flagship site on Regent Street - a spot it had occupied for more than 100 years - and moved over the road to the ex-Aquascutum store.
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