Home / Knowledge / News / Apparel/Garments / Alexon suffers from on-going challenging trading conditions
Alexon suffers from on-going challenging trading conditions
Jul '11
Alexon Group plc makes the following interim management statement for the period from 30th January 2011 to 7th July 2011.

As anticipated, trading conditions remained challenging for the UK retail industry. Group like-for-like sales for the 22 weeks to 2nd July 2011 were up 0.9%. This period incorporates a difficult start to the high summer sale reflecting lower footfall in June but is a creditable performance given the current market environment. Margins are slightly down, reflecting earlier promotional activity.

In terms of relative brand performance, Kaliko, Alexon and Eastex outperformed during the period as their Spring/Summer collections were well received by both the fashion industry and consumers.

Strong trading on these brands helped offset negatives on Dash and Minuet. Dash continued to be impacted by cotton raw material inflation which is now easing slightly. Ann Harvey remained broadly flat but with some very encouraging signs from their new casual development. Performance amongst our department store concessions was polarised, with the best performances being delivered from those store groups with established web platforms and an active marketing stance.

Initial intake of Autumn 2011 product is working well across all brands with positive like-for-like sales and faster stock turn than last year. We are pleased to have maintained a solid concession outlet base this year with some new high quality space being offered for Spring 2012.

Our multichannel strategy continues to progress exceptionally well, with total online sales for the period up 115% with strong trading through our partner concession websites as well as our own platforms. Catalogue sales on Eastex and Dash, though still small, exceeded our initial expectations and we will continue to grow this channel for the more classic brands.

Our new business and refurbishment programme, whilst limited by the need to conserve cash in the current climate, has delivered good sales and margin uplift. We continue to reshape our property portfolio and to make progress with the proposed sale of our two former warehouses in Milton Keynes and Cardiff.

Despite the good progress made during the period, given the on-going challenging trading conditions and the recent pause in investment, we expect performance for the current year to be impacted.

We continued to make progress with our turnaround strategy during the period, which focuses on restructuring our store portfolio; continuing to develop our brand propositions including the roll out of new retail environments, the further acceleration of our e-commerce business and a much needed systems overhaul. We commenced our systems improvement, during the period with the installation of a new warehousing system.

However, as announced at the time of the Group's preliminary results on 28th April 2011, the combination of challenging market conditions and the reduction in revenues as a result of the December trading losses has impacted the Group's ability to invest in the turnaround strategy.

Must ReadView All

US commerce department finds dumping of low melt PSF

Textiles | On 20th Jun 2018

US commerce department finds dumping of low melt PSF

The US department of commerce (USDC) has announced affirmative final...

Courtesy: Aditya Birla

Textiles | On 20th Jun 2018

'Growth of VSF yarn industry is difficult'

Growth for the viscose filament yarn (VSF) yarn industry is...

Comfort USP of Sensitive Fabrics range of Eurojersey Spa

Apparel/Garments | On 20th Jun 2018

Comfort USP of Sensitive Fabrics range of Eurojersey Spa

Italian company Eurojersey Spa will present in 2019 new embossing...

Interviews View All

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Top executives
Textile industry

Defining MSMEs on the basis of turnover makes it simpler to do business

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Eric Scholler

The Indian market has huge potential in technical textiles, and by far,...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Advanced Search