Suit store fights sales turn

Austin Reed's flagship Regent Street store got off to a flying start after a £12 million revamp last month but failed to offset a sharp decline in like-for-like sales across the group.

The makeover, launched last month, triggered a 17% sales increase in the store's first five weeks. That would have been nearer 30% had it not been for the scorching temperatures.

However, like-for-like sales across the group in the past two months are down 6%. While still looking grim, that figure marked a modest improvement on the figures for the half-year to

9 August, also unveiled today, showing like-forlikes down 8.7%.

Austin Reed rejected a number of takeover offers in the past year, most recently a £54 million approach from Matalan founder John Hargreaves. The first flurry of offers in the spring triggered a review and cost-reduction programme that cost £900,000.

Pre-tax profits for the half-year were £3.5 million, flattered by the £3.3 million profit on the sale of one of its properties. That compared with £2.7 million a year earlier. Turnover was £56.3 million against £60.3 million before. The interim dividend is pegged at 2.5p.

Sofas group DFS today admitted that tough competition from new furniture store operators and existing rivals had led to a 3.9% slump in its current order book. Underlying pre-tax profits rose 5% to £56.4 million for the year to 2 August on sales up 8% at £499.1 million, as seven new stores drove growth.