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Alexon Group recovery continues

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Fashion retailer Alexon Group has reported a 0.4 per cent increase in like-for-like (LFL) sales for the period between August 1st and November 23rd.

The interim management statement (IMS), published this morning, also indicated that the group has experienced overall margin growth of 0.4 percentage points during that time.

Alexon is currently in the midst of a turnaround strategy after it encountered serious trouble at the onset of the recession, resulting in the sale of its Bay Trading brand.

In an interview with Retail Gazette earlier this year, group CEO Jane McNally said that a number of different financial problems struck at the same time but the business is in a “much more solid position now” and ready to grow again.

Today’s results show that the brand portfolio as a whole is performing well, which suggests the company is moving in the right direction.

Kaliko, in particular, showed “very positive” LFL sales and margins, while Ann Harvey continued its LFL growth.

On the other hand the Dash and Minuet brands have both been unable to meet the group’s expectations, with the IMS citing an increase in cotton prices and stock mix problems for the respective underperformance of these brands.

“We are encouraged by the trends in our performance over the last three weeks which have shown marked improvement,” the statement read.

“That said, the consumer environment remains uncertain. We see no immediate change to this and re-iterate our cautious approach.”

One area of the business Alexon is particularly confident of growing in the months ahead is its online operation, where much investment is planned.

Giles Delafeld will join the company as E-Commerce Director on February 1st 2011 to oversee this expansion.

Published on Thursday 25 November by Editorial Assistant

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