Business

Alexon Group shares fall 30% on profit warning

 

Shares in Alexon Group closed down 29% after the womenswear retailer issued a profits warning amid poor sales and a tough trading outlook.

The owner of six brands in the UK, including Ann Harvey and Kaliko, said like-for-like sales fell 9% in first three weeks of August.

Group performance for the year would be "well below its previous expectations," a statement said.

The firm said it was in talks to sell the business.

"The company is in discussions with more than one party. However, no firm proposal has been received in this regard and there can be no certainty that a formal offer will be made for the company in due course," it said.

The group, which also owns the Dash and Minuet Petite brands, implemented a turnaround plan last year that involved raising £20m through shareholders and shutting tens of stores.

The company said trading conditions had deteriorated since its last trading update on 7 July, and remain "very tough".

However, it did highlight strong growth at its online business and at its refurbished stores.

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