Clothes sales have been 'below expectations'

Like-for-like sales at the company's UK fashion stores slumped 36% in the six months to the end of July as poor weather dampened trading.

Turnover fell just under �20m to �118m, resulting in a pre-tax loss of �1.2m.

The company, which has increasingly focused on home furnishings in recent months, said that clothing sales were "below expectations".

Format changes

The firm said it had made costs savings of �7m over the period, largely as a result of closing unprofitable stores in continental Europe.

Laura Ashley's home furnishing division, which accounts for the majority of the company's sales, performed better. Like for like sales rose 3%.

"We continue to work towards greater efficiency and cost savings and have had measurable success to date," said joint chief executive officer Rebecca Navarednam.

"Our store portfolio review and realignment is progressing well and encouraged by the performance of our stand-alone home furnishing stores, we will be converting further stores to this format."