House Of Fraser Sees Tough Start To Year

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Source:   —  April 13, 2016, at 6:18 PM

The dept store points to improved annual earnings but says the current financial year has seen a challenging start.

House Of Fraser Sees Tough Start To Year

Dept store House of Fraser has hailed an improvement in underlying annual profits but saw its bottom line weighed down by finance costs and said it'd seen a tough start to the current year.

The 167-year-old business, taken over latest year by China'south Sanpower conglomerate, said it'd edged into the black for the first time since two thousand six with pre-tax profits before one-off costs of £1.3m, compared to a loss of £1.6m for the year before.

But when including these exceptional costs – related to a refinancing deal – the company saw a £20.2m loss for the year to thirty January, widening from a £2.9m loss the year before.

House of Fraser said sales of £1.3bn saw an improvement of 4.2 percent in a like-for-like basis – helped by a powerful performance in menswear and accessories – though chief executive Nigel Oddy said the final quarter had seen a "volatile trading environment".

Revenues were bolstered by a powerful performance online, where sales were up twenty-six.8%, while there was only a meagre 0.1 percent expand at its bricks-and-mortar department stores.

Mister Oddy said the company had seen an encouraging response to spring and summer fashion ranges "despite a slower than expected start to the new financial year as has been documented across the retail sector".

Much of the sector saw a tough Christmas period as mild weather hampered sales of warm winter attire and there have been warnings that there are more tough times ahead in 2016.

Marks & Spencer latest week reported a 2.7 percent for clothing and residence ware for the thirteen weeks to 26 March.

Following said latest mo that it was facing its since the financial crisis.

House of Fraser has been rolling out store refurbishment programmes and is planning to launch a new Australian website later this month. Meanwhile plans for expansion in China continue with the first store there expected to open later this year.

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