8 April 2016 – trading statement
The woman’s clothing value retailer has issued a slightly disappointing trading statement for the 52 weeks to 26 March, saying that the pre-tax profits for the year will be at the bottom end of expectations. Trading after Christmas has been challenging although the company did well in the January sales, but the continuing cold weather has been unhelpful in kick starting the demand for spring products. Total sales in the year rose by 5.3% with like for like sales up 1% including on-line sales. At the end of the period, the group traded from 312 stores/concessions. The group has also confirmed that it does not see any improvement in trading and is therefore adopting a cautious stance over the new financial year which has just started. A new chief executive. Helen Connolly, who is currently senior buying director for George at ASDA, is due to start later this year and with adjusted pre-tax profits for the current year now expected to be £12.5m for earnings per share of 19.9p we feel the share price fall has presented a buying opportunity. BUY.