Laura Ashley's Online Sales Dip For First Time As It Overhauls Systems For Growth

Internet sales at Laura Ashley have dropped for the first time after the company overhauled its systems as part of a turnaround plan.

E-commerce sales in the 26 weeks to July 27 declined 3.7 per cent to £19.7 million compared to an increase of 21.4 per cent in the same period the previous year. 

Internet sales now represent 16.4 per cent of sales - more than most of its high street neighbours - compared to 16 per cent in the first-half last year.

'Significant systems enhancements in customer ordering were undertaken during the first half which naturally had some impact on operations but will improve the performance of the business and enhance the customer experience going forward,' the company said in a statement. 

'Work also continues on website improvement and enhancement as we continue to implement our multi channel strategy,' it added.


The company said it remained 'committed to a multi-channel strategy' and that e-commerce, mail order and 209 retail 'continue to work in a highly complementary way to drive sales'.

Group sales in the period dropped 5.6 per cent to £137.3 million and total UK sales fell 5.9 per cent to £120 million. Like-for-like sales fell 2.2 per cent. Furniture sales increased marginally while home accessories and decorating fell. Fashion was the biggest drag, dropping by 6.9 per cent, 6.6 per cent on a like-for-like basis - hampered by the cold start to the year. 

Pre-tax profit before exceptional items dropped 6 per cent to £7.8 million and, including exceptional items, pre-tax profit dropped 10.8 per cent to £7.4 million. Gross margins rose 1.3 per cent.

'Traditionally, our performance has been weighted to the second-half with particular emphasis on the final months of the year. We will continue to adjust our store portfolio to ensure it delivers a profitable core business and outside the UK, international expansion remains a key focus,' said chairman Dr Tan Sri Khoo Kay Peng.