Sales slump hits Laura Ashley

SALES have plummeted at Laura Ashley, the struggling fashion and home furnishings group that earlier this month lost its second chief executive in two months.

The company does not disclose Christmas trading but said underlying UK sales in the 24 weeks to 15 January were down by 11.6%.

The fall in home furnishings was 4.1% but fashion crashed by more than 28%. For the 50-week period, the overall group decline is 10.1%, with the fashion side down by more than 31% and home furnishings up by 0.1%.

The group, whose chief financial officer is David Cook, said it had been hit by fiercely competitive market conditions but has cut back on promotions and improved margins. It expects full-year profits to be in line with analysts' expectations of about £4m.

Performance at the group has not been helped by a series of boardroom departures - chief executive Ainum Mohd-Saaid quit suddenly a fortnight ago and is being replaced by another Malaysian, Lillian Tan. She is Laura Ashley's 10th new boss in 13 years.

Luxury goods group Mulberry will beat City forecasts after a cracking Christmas. Like-for-like sales in its full price UK shops chain jumped by 15% over Christmas, and are ahead by 14% in the 14 weeks to 1 January. Spring order books are ahead of target, and already total more than £1m from the new markets of Asia and the US.