Ladybird clothing boosts Woolworths sales

UK: Ladybird clothing boosts Woolworths 17 week sales

By just-style.com | 6 June 2007

Struggling UK retailer Woolworths Group today (6 June) posted an 11.4% jump in sales for the first 17 weeks of its financial year, boosted by good sales of Ladybird clothing, but warned it is approaching the second half "with caution."

Sales at the Woolworths retail chain, which sells everything from children's wear to garden furniture, were down by 0.6% on a like-for-like basis - which was in line with expectations.

"The early warm weather drove good sales of Ladybird clothing and our outdoor ranges," said Gerald Corbett, chairman. "Careful promotional management of Easter ensured we exited that period with minimal Easter specific residual stocks in the business."

In the Entertainment UK division, which wholesales CDs, DVDs and video games, sales were up 28.4%.

"Whilst the group has had a solid start to the year, it is difficult to predict the retail environment going forward," Corbett warned.

"We thus approach the second half with a degree of caution. In continuing to plan for a challenging retail environment we will run the business tightly, with a focus on cash generation, cost control and improved margin performance."

Analysts' profit forecasts for the year are pitched at around GBP26-27m. In the last financial year, pre-tax profits fell from GBP61.5m to GBP16m.

Sectors: Apparel, Finance, Retail

Companies: Woolworths Group