Peacock shakes off damp June

DISCOUNT clothing retailer Peacock Group today reported a positive start to 2004 despite failing to match last year's strong performance. But poor weather in recent weeks hit sales at its Bon Marche outlets.

The company said the division's spring-summer range was particularly geared to warm summer weather and generated a positive like-for-like gain during May and early June. But it added: 'The last two weeks of June in particular, being cool and wet, had a significant adverse impact on the figure for the quarter.'

Chief executive Richard Kirk said: 'The older lady holidays in England, likes to sit in the garden and go to the shops, and we all know the weather lately has been appalling.'

Bon Marche, acquired in July 2002, saw total sales lift just 3.7% against a particularly challenging increase of 24% last year. Peacock said the 6.4% rise on a two-year like-for-like basis was still encouraging.

The Cardiff-based group said total sales in the 13 weeks to 3 July had risen 13.6% against the same period in 2003. However, its shares slipped 4p to 240p in early trading as investors worried about competitive trading conditions.

The figures were not as good as the first quarter last year, when the group achieved a 17.5% increase on the same period in 2002 thanks to the hottest summer since 1976.

But the firm described its performance as strong given the challenging benchmarks.

Chairman Gavin Simonds said the trading environment remained very competitive, adding: 'Whilst it is early in the financial year, we are pleased to report a positive start.'

Peacock has three main businesses: its 405-strong chain of Peacocks stores, its Bon Marche chain for women aged 45 and over, and the recently acquired The Fragrance Shop business.

The group said the core Peacocks chain, which sells homeware, footwear and clothing for children and men and women aged 25 to 45, had delivered 'excellent results in both sales growth and margin improvement', with total sales up 18.5% against 14.1% in 2003.

More fashionable products drove the improvement, with ladieswear and footwear doing particularly well.

The firm continued to invest in refurbishing Peacocks stores, with 24 refitted during the quarter and eight new outlets opened, leaving nearly 60% of the chain with the new format.

The company said The Fragrance Shop chain, which it bought last month for more than £11m, had seen a 65.9% increase in total sales, which reflected Peacock's aggressive expansion plans.

In June, Peacock said pre-tax profits soared to £32.4m in the year to 31 March.