FASHION retailer Alexon today said it was making good progress with its turnaround strategy after an "encouraging" start to trading in the second half of the year.
The firm, which owns brands including Ann Harvey, Dash and Kaliko, announced a £20 million fundraising in March under plans to shut a quarter of its stores and launch shops in better locations.
Alexon plunged into the red in 2009, after its Bay Trading subsidiary collapsed, taking £9 million in exceptional costs.
Despite a further 5.5% decline in like-for-like sales in the 26 weeks to July 31, the group said its second half had started well, with autumn and winter ranges boosting like-for-like sales by 7% in the seven weeks to September 18.
Alexon said Ann Harvey, which was hit by stock woes due to the volcanic ash cloud disruption in April, enjoyed a particularly strong recovery.
Brands Kaliko, Dash and Minuet also showed improvements with like-for-like growth towards the end of the half, while Eastex and Alex & Co saw declines.
Alexon posted pre-tax profits before exceptionals at £950,000, marginally up from £900,000 last year.
But Jane McNally, chief executive of Alexon, said the company remained cautious over its outlook given the current economic uncertainty.
A major part of the group’s recovery plan is a £10 million property overhaul, funded by the sale of stores earlier in the year.
Alexon said its property profile has been reshaped, leaving it with 63 stand-alone stores and 1,092 concession outlets across Europe. The business has opened 50 concessions and plans a further 62 before the end of the year.
The group now operates websites for all six of its brands and has also opened a stock clearance page on auction website eBay.
Freddie George, retail analyst at Seymour Pierce Research, said the results overall were "mixed" but that the start to the second half of the year was "encouraging".
