Flying Brands has issued a profit warning due to an underperforming flowers business and a recent decline in its bird food business. Like-for-like orders to 1st April in its Flowers division were 14.7 per cent below last year. Orders in the bird food division during the period are 33.5 per cent down on last year. Flying Brands blamed wilting sales on reduced consumer spending and increased competition from low-cost operators such as supermarkets. As a result, Flying Brands will begin discussions with its lenders to renegotiate its banking arrangements.
International sales at apparel etailer ASOS have exceeded UK sales for the first time, in the fourth quarter of 2011. UK sales rose 24 per cent during the quarter to £44.9 million, while international sales jumped 161 per cent to £48.4 million, accounting for 52 per cent of total retail revenue. Breaking the figures down into territories, US sales were £7.1 million-a 222 per cent increase on the fourth quarter 2010; EU sales rose 76 per cent to £21.3 million and rest-of-world sales increased 367 per cent to £20.0 million. Total retail sales for the fourth quarter were up 70 per cent to £93.4 million. In a statement, chief executive Nick Robertson said he expects profit to hit the top end of market expectations.
John Lewis is launching its first ever online fashion magazine. The Spring fashion special is a new addition to the retailer’s in-store magazine John Lewis Edition and is published by John Brown Media. Features include editor’s picks, spring trends, videos for beauty and
makeup tips, wardrobe planning ideas, and a competition to win John Lewis vouchers. The magazine will be hosted on johnlewis.com
from tomorrow.
Online retailer M8 Group reports that sales for its Greenfingers.com and PetPlanet.co.uk brands exceeded £1.5 million during March-a 55 per cent increase on the same period last year. The business is experiencing a 50 per cent year-on-year growth in the first quarter and says it is trending ahead of its revenue and profit targets for the year.
US-based apparel retailer J Crew is planning to launch an eCommerce operation in the UK this summer reports the Financial Times. The retailer already sells online in the UK through a partnership with upscale apparel etailer Net-a-Porter.
The government has published a number of amendments to the Postal Services Bill that incorporate feedback from MPs, Lords, Royal Mail, other postal operators and the Communication Workers Union. The amendments include giving new powers to regulator Ofcom to allow it to better monitor threats to the universal service (one-tariff-goes-anywhere promise) arising from increased competition. Royal Mail will remain the sole provider of the universal service for at least the next decade and Ofcom will also be required to “have regard” for the universal service provider to have a “reasonable commercial rate of return on the provision of that service”.
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